The purpose of the report is to provide a high level assessment of the current reality in Kenya in regards to the penetration, costs and effectiveness of banking delivery channels, specifically bank branches and agents, against the perspective of practice in other relevant jurisdictions. This is done in order to frame the key choices and recommend ways forward to shape new directions in the policy and regulatory environment for retail banking distribution, which will emerge following the approval of a regulatory framework for agents. This document is intended to be used as a background and basis for informed consultation between regulators and banks. Note that the scope of this report does not address specifically the issue of regulating the distribution for non-banks offering financial services other than as a point of comparison. It also does not intend to make detailed recommendations regarding regulation and supervision of banking channels: these details follow the consideration of the key options and underlying philosophies outlined in this report, but are not part of it.