Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
CENTRAL BANK OF KENYA
NNAATTIIOONNAALL BBAANNKKIINNGG && FFIINNAANNCCEE CCOONNFFEERREENNCCEE
SSaarroovvaa WWhhiitteessaannddss,, MMoommbbaassaa
33rrdd JJuullyy 22001122

Hon. Robinson Njeru Githae, Minister for Finance;
Hon. Kenneth Marende, Speaker of the National Assembly;
Hon. Justice Willy Mutunga, Chief Justice of the Republic of
Kenya;
Hon. Prof. Githu Muigai, Attorney General of the Republic of
Kenya;
Mr. Richard Etemesi, Chairman, Kenya Bankers Association;
Mr. John Waka, Chairman, Kenya Institute of Bankers;
Chief Executives of Financial Sector Regulators here present;
Distinguished Guests;
Ladies and Gentlemen:
I am delighted to join you this morning at the onset of this landmark
Conference. At the outset, I would like to thank the Kenya Institute of
Bankers for inviting me to this forum. I also applaud all those who
participated in organising this conference for their commendable efforts.
Ladies and Gentlemen: My task this morning is to invite the Minister for
Finance to deliver his keynote address to this gathering and also officially
open the forum. But before I do so, allow me to make some few remarks on
the ongoing developments in the financial sector.
Over the last five years, the Kenyan financial sector has witnessed
significant transformational developments. The Kenya Institute of Bankers
has been on the driver’s seat to spearhead these developments. Let me
highlight a few of these developments:
The growth of technologically enabled financial services, especially
through the inter-linkage of mobile phone technology platforms and
banking technology platforms;
Increased regional and international expansion and connectivity of
financial service players as well as increased market potential to the
region;
Increased market awareness of customer rights and the resultant
emphasis on consumer protection; and
Strengthening of oversight mechanisms to protect the integrity of
financial systems. The operationalisation of the National Payment
Systems Act and the Financial Reporting Centre amongst others will
strengthen the integrity and stability of the financial system;

Ladies and Gentlemen: These developments present not only
opportunities but also significant challenges. To be able to exploit the
resultant opportunities and surmount the challenges, there is need to
enhance the skills and competence of our human resources. It is therefore
imperative that the Kenya Institute of Bankers and other capacity building
institutions continuously interact with the market for their programmes to
remain relevant.
Ladies and Gentlemen: Kenyan banks have taken the lead in positioning
themselves for the expanded market of more than 100 million people in the
five East African Community Countries. More than ten Kenyan banks have
presence in the EAC member countries and beyond. Following the
operationalisation of the Customs Union and Common Market, the EAC
member states are currently preparing for a Monetary Union. As part of this
preparation, the EAC Central Banks are harmonizing their supervisory rules
and practices while benchmarking to global standards. This will not only
facilitate integration but will also position the region as a financial hub. To
facilitate effective preparations for the monetary union, KIB should tailor its
training programmes to satisfy the emerging needs of a dynamic regionally
integrated financial sector.
Ladies and Gentlemen: Kenya’s aspiration of being an International
Financial Centre is already receiving a boost from the increasing interest by
leading global banking brands. Over the last two years, four foreign banking
institutions have opened Representative Offices in Kenya, with four others
in the pipeline. These Representative Offices allow the foreign institutions
to study the market with the aim of up-scaling to fully fledged banking
institutions.
Ladies and Gentlemen, it is worth noting that capacity building by banks
should not be a preserve of operational staff as has been the case
traditionally, but should span across all cadres of staff including board
members. In this regard, KIB should review its offerings to ensure that they
cut across all levels from the Board to operational levels.
Ladies and Gentlemen, it is now my pleasure to welcome our Chief
Guest, Hon. Robinson Njeru Githae, Minister for Finance, to deliver his
keynote address and officially open the Kenya Institute of Bankers’ National
Banking and Finance Conference 2012.
Honourable Minister, you have the floor.