CENTRAL BANK OF KENYA
Remarks by
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Cooperative Bank, Meru Branch
Friday, August 19, 2011

The Deputy Prime Minister and Minister of Finance, Hon. Uhuru
Kenyatta;
The Provincial Commissioner, Eastern Province, Ms. Claire
Omollo;
The MP for North Imenti, Hon. Silas Ruteere;
His Worship the Mayor of Meru, Councillor Mr. Mwalimu John;
The District Commissioner, Imenti North, Mr. David Cherop;
The Chief Executive Officer, Co-operative Bank Kenya Limited,
Mr. Gideon Muriuki;
The Chief Executive, Kenya Bankers Association, Mr. Habil Olaka;
Commercial Bank Chief Executives and their Branch Managers
here present;
Distinguished Guests;
Ladies and Gentlemen:
I am greatly pleased and appreciative once again to witness another
milestone achievement of the collaborative effort between the Central Bank
of Kenya and the Kenya Bankers Association, that is , the launching of
Currency Centres concept in Kenya and the official opening of Meru
Currency Centre by the Deputy Prime Minister and Minister for Finance.
Honourable Deputy Prime Minister and Minister for Finance, the banking
sector has undergone major transformation in the last five years in light of
changing consumer needs. The most notable changes have been the rapid
expansion of branch networks, increase in client accounts and in the
number of Automated Teller Machines (ATMs) across the country, use of
agents and mobile phone infrastructure by banks to provide financial
services and increased outsourcing of cash processing and movement
services. These developments have significantly impacted on currency
circulation patterns in the country making it inevitable for the Central Bank
and commercial banks to review how these operations can be conducted
cost effectively.
Honourable Deputy Prime Minister, the Central Bank of Kenya in
conjunction with the Kenya Bankers Association embarked on establishing

Currency Centres two years ago. This was done as a way of supporting
commercial banks to efficiently provide financial services in various regions
of the country and reduce the distance over which cash is moved between
one Central Bank Office and the upcountry branches of commercial banks.
The main objective is to reduce cost of doing business.
Honourable Minister, the first Currency Centre under this initiative was
established in December 2009 in Nyeri followed by Nakuru Currency
Centre in December 2010 and Meru in February 2011. The three Currency
Centres currently serve a total of 172 commercial banks’ branches and
account for over 12% of the total currency activities in the country. As the
Banking Fraternity looks forward, the lessons learnt from these three
centres will inform policy and strategies for the next phase of this initiative.
Honourable Deputy Prime Minister and Minister for Finance, in finalizing
my remarks, allow me to express our appreciation to the Government for
the continued support to the banking sector initiatives. Notable areas of
these initiatives are: Mobile Financial Services Platform; establishment of
Credit Information Sharing Framework, establishment of Agency Banking;
operation of Deposit Taking Microfinance Institutions and more recently,
the Cheque Truncation System. These initiatives have been rolled out under
the background support of the Government and more specifically the
Ministry of Finance. The Central Bank of Kenya in collaboration with the
Kenya Bankers Association will continue working hard to make a positive
contribution for the prosperity of our country and to make Kenya investors’
financial hub of choice.
With these few remarks, it gives me great pleasure to invite the Deputy
Prime Minister and Minister for Finance, Hon. Uhuru Kenyatta, to address
this occasion, officially launch the Currency Centres Initiative in Kenya and
formally open Meru Currency Centre.
Thank you