Nairobi, May 12 -- Forty-four percent of banks and microfinance institutions supervised by the Central Bank of Kenya (CBK) did not spend on research and development last year signalling reliance on product duplication in the financial sector.

The CBK noted that 33 percent of the financial institutions surveyed spent less than Sh5 million in research.

Only 23 percent of 37 banks, one mortgage financing institution and 14 microfinance institutions surveyed by CBK spent more than Sh5 million on research and development last year.

"Substantive efforts are required to be channelled towards research and development when it comes to product innovation," said CBK in the banking sector innovation survey.

"However, 33 percent of financial insti...