CENTRAL BANK OF KENYA
Remarks by
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Kenya School of Monetary Studies, Nairobi
September 7, 2011

Governor’s Remarks at Launch of CAF and EAAFN, KSMS – September 7, 2011
The Hon. Minister for Agriculture, Dr. Sally Kosgei;
The Secretary General, East Africa Community, Amb. Dr. Richard
Sezibera;
Permanent Secretary, Dr. Romano Kiome
USAID East Africa Regional Director, Lawrence Meserve;
Chief Executive Officers of Commercial Banks;
Esteemed Members of AFRACA;
Distinguished Participants;
Ladies and Gentlemen:
Good Morning:
Hon. Minister, About a year and a half ago, on 17th March 2010, we
gathered here to discuss innovative ways to increase financial flows to the
agricultural sector. The delegates in that meeting identified limited human
capacity in agricultural lending as an impediment to financing the sector.
The Kenya School of Monetary Studies was tasked to address this human
resource gap amongst lending institutions.
Ladies and gentlemen: I am pleased to inform you that after extensive
consultations with key stakeholders, the School with the support of USAIDCompetitiveness and Trade Expansion Project (COMPETE), developed a
Modular Certificate Training Program whose launch we are all here to
witness.
I wish to commend the team that steered the process of initiating this
important program. In order to further develop this sector, this committee
has been transformed into the East African Agricultural Finance Network
(EAAFN) with a view to nurture, deepen and consolidate the sector’s
capacity building agenda.
Hon. Minister, I also recognize the presence, at this forum, of the
inaugural class of the Regional Certificate Program in Agricultural Finance.
I hope the course is has met your expectations.

Governor’s Remarks at Launch of CAF and EAAFN, KSMS – September 7, 2011
Hon. Minister, Ladies and gentlemen: The rapid growth of
microfinance suggests that there may be a large market for rural and
agricultural loans. It is therefore important to better understand the
demand for and use of agricultural credit to develop effective products,
institutions and policies. That is why the CAF program mainly targets staff
working in the credit and product development units in regional
commercial banks, agricultural SACCOs and Micro-finance Institutions.
Hon. Minister, Ladies and Gentlemen, let me conclude by again
expressing the Central Bank of Kenya’s appreciation of various institutions
that have enabled the development of this capacity building programme as
well as the 22 financial institutions that are represented by the pioneer CAF
participants.
While acknowledging that the challenges facing agriculture are huge given
the growing population, declining land sizes, climate change that has
imposed severe costs on the sector, all of which compound the problem of
financing agriculture, the challenges are not insurmountable, if we work
together.
Ladies and Gentlemen, it is now my pleasure and privilege to welcome
The Hon. Minister for Agriculture, Dr. Sally Kosgei to give the key
note address and officially launch the East African Agricultural
Finance Network (EAAFN) and inaugurate the Regional Certificate
Program in Agricultural Finance.
Thank you.