CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
BUSINESS EDITORS’ WORKSHOP
Enashipai Resort & Spa, Naivasha
Friday, May 2, 2014

Dr. Haron Sirima, Deputy Governor, Central Bank of Kenya
Mr. Jaindi Kisero, Managing Editor (Economic Affairs), Daily Nation
Business Editors here present
Central Bank of Kenya Colleagues
Other distinguished participants
Ladies and Gentlemen
I would like to register my profound appreciation to you, members of the Fourth
Estate for making time to attend this Workshop. No doubt, your role as editors is
extremely demanding on your time. I believe this workshop in an important step in
enhancing the partnership between the Central Bank and the Media, in line with the
theme, Building a Platform for Greater Partnership.
As you may already be aware, it was once believed that central banks needed to be as
uncommunicative and as secretive as possible due to the conventional idea that doing
so would safeguard the autonomy of policy making, coupled with the perceived
wisdom of saying as little as possible. However, the last 15 or so years has witnessed
tectonic shifts regarding how central banks view their communications. Central
Banks have recently begun to engage in public communications more proactively and
purposely. The shift is validated by the linkage between enhanced communication and
the achievement of economic outcomes. Transparency in the policy making process
creates partnerships and best outcomes.
Ladies and gentlemen: Communication is essential to the functioning of a modern
central bank as a policy tool rather than merely a means of conveying information, as
traditionally understood. Communication enhances the effectiveness of policy by
improving the public understanding of policy objectives and enhancing the legitimacy
of the message. An overriding priority for a central bank is to provide financial
markets, and by extension the general public, the confidence that its policy actions are
in the public interest. By clearly explaining its objectives, central banks gain public
support and in the process, secure the opportunity to shape expectations and influence
behavior in a desired direction. Additionally, the prevailing emphasis on
communication is informed by the need to balance increased demands for central bank
independence with an equally necessary accountability to the public. That means
ensuring that policy objectives are communicated in a manner that is understood and
comprehended by the target audience. By investing in communication, central banks
earn the trust of the public to pursue its strategic priorities independently. In addition,
the decisions made by the central banks are themselves important inputs to decisions
by governments, firms and households.

Ladies and Gentlemen; It is against this background that the Central Bank of Kenya
began, a few years ago, reforming its public communications function in response to
the heightened demands for information by the various stakeholders. Some of the
recent initiatives in this direction include; acquisition of a Web Content Management
System with broad functionalities to enhance interactivity and navigation;
participation in public education initiatives and awareness campaigns through
involvement in trade fares such as ASK Shows; improvement in the quality of Central
Bank publications; and improved mechanisms for handling media & public inquiries.
Ladies and Gentlemen; To effectively execute its mandate, the Central Bank relies on
a wide range of information inputs from various stakeholders, including the media.
The Monetary Policy Committee (MPC) for instance regularly reviews media
coverage of the financial and economic news as well as media predictions about the
likely direction of monetary policy. In addition, the Bank normally takes great
interest in the media review of its decisions. The financial news therefore forms a
useful part of what broadly shapes policy making. I will discuss more of this in my
presentation.
Ladies and gentlemen: It is in view of your pivotal role as both information
intermediaries and a unique target of our communication, that the Central Bank is
keen to develop a structured engagement with the financial media. The Bank
recognizes the need to ‘ride on your backs’, so to speak, to reach the ultimate
stakeholder, the mwananchi. In order to empower you to undertake this role, the
Central Bank would like to contribute, within its means, to the development of a
budding financial journalism sector in Kenya through appropriate capacity building
programmes for business journalists. As Kenya aspires to become a regional financial
hub, the role of financial journalists cannot be gainsaid. The need for journalists with
comprehensive economic reporting and analytical capabilities will become
increasingly necessary if Kenya is to achieve and sustain the regional financial hub
status. The Central Bank seeks to collaborate with the media in supporting broad
based educational programmes for the society, such as Financial Literacy and
promotion of a Savings Culture.

Ladies and gentlemen: All that I have described in my remarks emphasize the need
for mutual cooperation and partnership. Indeed, this workshop’s theme is ‘Building a
Platform for Greater Partnership’. Going forward, we at the Central Bank commit to
working closely with you in partnership to serve our nation better. This workshop is
therefore forms the start of a ‘win- win’ engagement that leads to better service
delivery for our stakeholders. We also look forward to learning from you as you
constructively critique the effectiveness of our communication and offer suggestions.
Key questions moving forward in this partnership are: What are the practical steps
that will anchor the partnerships between us? How do we ensure a sustainably
structured framework in which policy intentions of the Central Bank gain traction in
the public domain? How do we reduce superfluous noise that occasionally cloud the
greater and more fundamental achievements in the policy terrain? How do we move
forward with the agenda emerging from the cross-fertilization of ideas that will
emerge from the workshop?
Ladies and gentlemen; the Central Bank proposes a structured capacity building
programme targeting business writers who cover the financial sector. In collaboration
with the Kenya School of Monetary Studies (KSMS), the Central Bank will be
seeking the input of the financial media to develop an appropriate Business Editors’
training curriculum that takes cognizance of the needs of the financial sector, in light
our stage of development. In addition, the Bank will be hosting a Business
Journalists workshop once a year, which will be appropriately themed to reflect the
issues of the time. Furthermore, the Central Bank in partnership with other financial
sector regulators proposes the formation of a Business Editors & Financial
Regulators Forum. The role of this forum shall be largely advisory and will be
tasked with providing appropriate advice on public education campaigns on broad
latitude of themes such as financial education & literacy campaigns, and other
mutually agreed programmes within the core competencies of the media.
I believe these proposals will be refined as we go along and what emerges from this
workshop will further shed more light in this regard.
Once again I thank you for taking time off your busy schedules to participate in this
workshop. May I also take this opportunity to appreciate my colleagues at the Central
Bank for organizing this workshop successfully. And to the management and staff of
Enashipai Resort and Spa for the excellent hospitality extended to us.
Ladies and gentlemen; With these remarks, it is now my humble pleasure to declare
this workshop officially opened.
Thank you.