KSMS Research Centre was established with the aim of expanding the scope and contribution of KSMS to include research in policy relevant fields such as economics and financial management to solve economic challenges facing the Eastern and Southern Africa region. It is envisaged that the KSMS Research Centre will be a premier regional institution that will champion and expand knowledge frontiers through policy research. It is also expected that the Research Centre will complement capacity building effort of KSMS through curriculum development and supervision of postgraduate research. Currently, the Research Centre plays an active role in the Master of Banking and Finance (MBF) with focus on microfinance. The MBF postgraduate program is funded by African Capacity Building Foundation as part of human capital development for the region’s financial sector.

The broad mandates of the Research Centre include:

1. Carrying out research and training in the fields of Economics, Banking, Micro-finance, Public Policy, Administration and Finance.

2. Generating research results for use by policy analysts, Government Ministries and institutions and participants in the financial sector, including the Central Bank.

3. Promoting links between KSMS Research Centre, the regional and international research institutions, Central Bank Researchers and training activities at Kenya School of Monetary Studies.

4. Improving course curriculum for undergraduate and postgraduate courses on offer in the School to serve the labour market needs of the regional financial sector.

The Research Centre is organised into three divisions, namely, Macroeconomic Analysis, Financial Sector Analysis and Public Policy Analysis. The Macroeconomic Analysis Division in turn covers three broad areas: External Sector Analysis, Real Sector Analysis, and Analysis of Fiscal and Monetary Policies while the Financial Sector Division’s broad areas of research include: Financial Sector Regulation, Financial Markets and Instruments, Funds Management, and Financial Education/Literacy. The Public Policy Analysis Division is expected to undertake multi-disciplinary policy research that encompasses economic, social and political developments. Areas of research focus include: Public Sector Management, Political Governance and Public Sector Performance Measurement.

Given its regional focus, the Centre provides scholars and practitioners a platform for exchange of ideas and sharing experiences through conferences and workshops. Such policy discussions forum is of significance to the society in bringing to the fore pertinent issues such as macroeconomic management issues, poverty alleviation, financial access, governance and impact of internal and external shocks.