CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
LAUNCH OF THE EQUITY-M-PESA BANKING
PRODUCT
KICC, Nairobi
18th May, 2010

Governor’s Remarks at the Launch of the Equity-M-Pesa Banking Product – May 18th, 2010
Your Excellency, Hon. Mwai Kibaki, President and Commanderin-Chief of the Armed Forces of the Republic of Kenya;
The Right Hon. Prime Minister, Raila Odinga;
Hon. Uhuru Kenyatta, Deputy Prime Minister and Minister for
Finance of the Republic of Kenya;
Hon. Samuel Poghisio, Minister for Information and
Communications;
Hon. Ministers present;
Mr. Peter Munga, Chairman, Equity Bank Ltd.;
Dr. James Mwangi, Chief Executive, Equity Bank Ltd.;
Mr. Michael Joseph, Chief Executive, Safaricom Ltd.;
Deputy Governors of the banks of Southern Sudan and Uganda;
Distinguished Guests;
Ladies and Gentlemen:
Your Excellency, May I take this opportunity to express our gratitude for
your presence here this morning. Your personal presence demonstrates the
seriousness with which the Government of Kenya takes the role of the
financial sector and its innovation in the process of our nation’s economic
development. May I also commend Equity Bank Ltd. and Safaricom Ltd. for
partnering to develop this innovative product. It is only through
partnerships such as this that we can create strong financial institutions for
financial development.
Your Excellency, the product being launched today is expected to play a
significant role in expanding access to affordable financial services by
Kenyans. Mobile phone technology has in a few years of its existence
demonstrated how financial inclusion can be leapfrogged on a major scale
and in a short time span using appropriate technological platforms. In only
three years of the existence of mobile phone money transfer services, three
mobile phone operators have launched the services and have enrolled over

Governor’s Remarks at the Launch of the Equity-M-Pesa Banking Product – May 18th, 2010
9.5 million customers and recruited over 27,000 agents. Total transactions
have now reached Ksh.1.8 billion a day and Ksh.56 billion a month.
Mobile money transfer services have been a phenomenal success and have
put Kenya at the global centre stage of financial inclusion and innovation.
They have greatly facilitated money transfers across the country. But one
criticism has been that these developments have not improved the process
of financial intermediation in the country. The product being launched
today is a major step in this direction – perhaps the frontier nobody outside
Kenya has imagined.
Your Excellency, on its part, the Central Bank will continue to play its
role in promoting a stable and conducive environment for financial
innovation to thrive. At the micro level, the Bank will continue to work with
the Ministry of Finance and the financial sector regulators to promote a
sound, safe, efficient and inclusive financial system and with no room for
regulatory arbitrage.
Your Excellency, with these few remarks, it is now my pleasant duty to
request the Minister for Information and Communications, Hon. Samuel
Poghisio to make a few remarks and to welcome the Deputy Prime Minister
and Minister for Finance.
Honourable Minister for Information and Communications, You
Have The Floor.