CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
OPENING OF THE WORKSHOP ON THE HARMONIZATION OF
MONETARY AND FINANCIAL STATISTICS IN THE EAST AFRICAN
COMMUNITY
Norfolk Hotel
Tuesday, March 29, 2010

Mr. B. Rajcoomar, Chief of Financial Institutions Division, IMF;
Mr. Jaroslav Kucera, Senior Economist, IMF;
Mr. Thomas Morrison, EDDI Project Manager, IMF;
Mr. Robert Maate, Senior Statistician EAC Secretariat;
Distinguished Participants;
Ladies and Gentlemen;
I welcome you all to Kenya and to this very important workshop on the
compilation and harmonization of monetary and financial statistics in the
East African Community (EAC). I thank you all for attending this workshop.
Ladies and Gentlemen,
This workshop is taking place at a critical stage in the integration process of
the EAC and monetary and financial statistics play a critical role. This will
support the institutions to be formed under the regional integration
process. Previous milestones achieved comprise of the establishment of an
EAC Customs Union and the launch of the Common Market Protocol. These
developments, ladies and gentlemen, underscore the need for a
statistical harmonization framework and related capacity building strategies
for the region.
The success of the regional integration initiative is anchored on a number of
convergence criteria that require information and analysis: In this regard,
the computation, concepts, definitions and methods used in compiling the
indicators that determine the convergence criteria must be understood,
harmonized and consistent across all Partner States. Furthermore, since the
EAC regional integration initiative envisages a centralized approach to the
policy making process, it has to be anchored on appropriate and adequate
indicators and centralized statistical information. Thus the harmonization
of monetary and financial statistics, among other statistics, will be critical
for policy formulation and implementation within the EAC region.
In fast-tracking the process of statistical harmonization among the Partner
States, the EAC Central Bank Governors recently approved the hiring of

short-term consultants from among Partner States. I am aware that the
consultants have begun work and we believe this workshop has come at the
most appropriate time so as to complement their efforts.
Ladies and Gentlemen,
Towards this end, I want to thank the International Monetary Fund (IMF)
for the Technical Assistance they continue to provide in the development
and harmonization of statistics, in the EAC region. About two years ago,
most of our countries concluded the second phase of the General Data
Dissemination System (GDDS) project which was aimed at improving the
availability and quality of data, in developing countries. This was important
in order to conform to international standards. Some of the major
achievements of the monetary module of this project include the correct
classification of key financial assets and liabilities and sectorization of
transactions for the main deposit taking institutions in our financial sectors.
The end result was the compilation and filing of standard reports by most of
the EAC countries with the IMF Statistics Department.
Again I recall that towards the end of last year, the IMF approached most of
our countries to consider joining the Enhanced Data Dissemination
Initiative (EDDI). The focus of the EDDI is to consolidate the gains realized
under the GDDS while expanding the institutional coverage in statistical
compilation to include other deposit taking institutions such as SACCOs
and microfinance; and other key financial sector institutions such as
pension funds and insurance companies. I am aware that the work plans
were prepared during the first EDDI workshop in Kampala and the IMF has
identified technical experts for each of our countries. This workshop is
therefore part of the greater plan towards the improvement of statistics in
the region by the IMF. I wish to sincerely thank the IMF for these
initiatives.
It is only appropriate at this juncture to recognize, Ladies and
Gentlemen, the critical role that the EAC Secretariat has played in
providing an elaborate roadmap on how statistical harmonization can be

achieved within the EAC region. However, for this to succeed, an
appropriate mechanism, in terms of institutional arrangements and legal
frameworks, has to be put in place to guard and guide the production of
harmonized and quality statistics in the EAC Partner States and more
importantly, at the regional level. These statistics will inform policy
formulation and implementation in the integration process.
All countries have their own data collection, storage and processing centres.
It is a question of how we can pick the important aspects from our own
areas for use, standardization and centralization.
Ladies and gentlemen,
In concluding my remarks, I welcome you once again to Kenya and to this
workshop. Though the duration of the workshop is short, please find time to
visit some of our beautiful sceneries around town and sample what the City
of Nairobi has to offer.
It is now my pleasure and humble duty to declare this workshop officially
open.
Thank you.