CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
UUNNVVEEIILLIINNGG OOFF CCOONNSSOOLLIIDDAATTEEDD BBAANNKK OOFF KKEENNYYAA’’SS
The Hilton Hotel, Nairobi
4th June, 2010

Eunice Kagane, Chairlady, Consolidated Bank of Kenya Ltd;
Mr. David Ndegwa Wachira, Chief Executive Officer,
Consolidated Bank of Kenya Ltd;
Board Members;
Management and staff;
Distinguished Guests;
Ladies and Gentlemen:
1. I am delighted to have been invited to this auspicious occasion of unveiling the new
look of Consolidated Bank of Kenya. Allow me at this early juncture to commend
the board, management and staff of Consolidated Bank of Kenya for their
contribution in the growth of the institution from the reigns of the failed institutions of
the 1980’s to where it is currently. It is a stark reminder of our failures in the past
and how we have managed to turn it into an opportunity. The re-branding identity
is a significant development aimed at achieving this goal.
2. I am aware that Consolidated Bank of Kenya has come a long way since it was
incorporated in 1989 under the financial sector reform program established by the
Government with the objective of taking over and re-structuring various troubled
institutions. The process of rationalising, reorganising and re-structuring of the failed
institutions into a viable professionally managed commercial bank was initially
expected to take about five years and thereafter its shares were to be sold to the
public. However, the institution’s mandate was changed in 2001 to operate as a fully
fledged commercial bank offering a full range of both retail and corporate banking
services.
3. The banking industry has become very competitive in the recent past and for you to
compete effectively within your market niche you need to keep abreast of various
innovative technological advancements that will support the service platform of your
market niche. It is therefore important that this re-branding is seen not only in terms
of a corporate identity but should also reflect an improved service delivery by the
institution as well.

4. The Government of Kenya unveiled the country’s development blueprint, ‘’Vision
2030’’ in 2008. The vision for the financial sector is to ‘’Create a vibrant and
globally competitive financial sector, driving high levels of savings and
financing Kenya’s investment needs’’ To achieve this, the Banking Sector is
expected to increase efficiency and banking services reach especially to rural areas
to help drive increased domestic savings.
5. In this regard, it is imperative for stakeholders to explore mechanisms to deliver
financial services and push forward the financial inclusion frontiers in tandem with
Vision 2030. As a first step in pushing the initiative forward, the Banking Act was
amended through the Finance Act 2009 permitting banks to use third parties (Agent
Banking) to provide certain banking services on their behalf. I take this opportunity
to urge banks to take advantage of the new provision. The agent banking model was
designed to assist banks to lower their cost of offering banking services while at the
same time improving their earnings as more Kenyans are offered an opportunity to
access financial services.
6. The Kenyan banking Sector continues to perform well despite the global financial
turbulences and challenges on the domestic front. The sector’s total assets increased
by 21% from Ksh.1.20 trillion in March 2009 to Ksh.1.45 trillion in March 2010
whereas deposits increased by 23% to Ksh.1.14 trillion over the same period. Profit
before tax for the sector increased by 33% from Ksh.12.8 billion in the first quarter of
2009 to Ksh.17.0 billion in the first quarter of 2010. This is remarkable, especially
against the backdrop of domestic shocks and global financial crisis.
7. Despite the impressive performance by banks, customers still have to contend with
high borrowing costs. Although many banks have responded to Central Bank’s plea
of lowering interest rates, it is our expectation that all the banks should follow to
support the economic growth via the support of expanded private sector credit at an
affordable cost. On our part, we should now ask the real sector to access and
negotiate credit in line with their potential investment.

8. Finally, let me reiterate that Central Bank and indeed the Government of Kenya will
continue to pursue policies that create a conducive environment for growth of the
financial sector and encourage the provision of banking services to majority of the
un-banked Kenyan population at affordable cost. For us to be successful in this, we
need to support strong institutional growth and remove underlying constraints that
inhibit growth and financial reach.
9. With these few remarks ladies and gentlemen, it is now my honour and pleasure to
declare the new brand of Consolidated Bank of Kenya officially launched.
Thank you and God bless you all.