CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
OPENING CEREMONY OF THE 2010 ALLIANCE FOR
FINANCIAL INCLUSION (AFI) GLOBAL POLICY FORUM
Bali, Indonesia
September 27, 2010

His Excellency Susilo Bambang Yudhoyono, President, Republic of Indonesia;
Her Excellency Mme. First Lady Ani Bambang Yudhoyono
Cabinet Ministers here present;
Dr. Darmin Nasution, Governor, Bank Indonesia;
Fellow Governors;
Heads of Regulatory Authorities;
Dr. Alfred Hannig, Executive Director, Alliance for Financial Inclusion;
Distinguished Guests;
Ladies and Gentlemen:
Salutary Remarks
Your Excellency, we are honoured by your presence which is testimony to your
governments’ commitment to financial inclusion. Allow me also on behalf of the
Alliance for Financial Inclusion, (AFI), Steering Committee and AFI membership to
extend our gratitude to the Government of Indonesia and Bank Indonesia for hosting
this forum. We are grateful for the warmth and hospitality extended to us by the
people of Indonesia on this beautiful and scenic island of Bali. We will certainly carry
with us back home very fond memories of Indonesia.
AFI’s Mandate and how this forum will be useful to policymakers
Your Excellency, AFI is the first global knowledge-sharing network designed
exclusively for financial inclusion policymakers and regulators from developing
countries. Developing countries face similar needs, conditions and challenges in
building an inclusive financial system. At the same time, these countries are
originating many innovative solutions to support financial inclusion. This network
coordinates a platform to share these innovations and to support the framework for
more innovations for financial inclusion. The AFI platform demonstrates power of
tapping into synergies to move financial inclusion to the next level in developing
countries. This is underpinned by AFI’s target of enabling an extra 50 million people
living on less than two US dollars a day to have access to formal financial services by
2012.
For instance in my country, Kenya, the advent of mobile phone technology has
opened up money transfer services to over ten million Kenyans, some of whom were
previously excluded from accessing formal financial services. Given the dire need to
scale up financial inclusion in Kenya, we have embraced policy reforms and
innovative models to scale up financial inclusion including agent banking, credit
information sharing and licensing and regulation of Deposit Taking Microfinance
Institutions and Savings and Credit Co-operatives. In addition, we have moved
mobile phone money transfers a notch higher with micro accounts, microcredit and
microinsurance being operated on the mobile phone platform. These initiatives are
guided by our resolve as a regulator to advise, form partnerships, develop and
regulate the market. This four pronged approach is the only way to build an inclusive
financial system that acts as a bridge to growth and prosperity particularly for the
poor.

Ladies and Gentlemen: This encouraging progress notwithstanding, we still have
more to achieve in Kenya to build a truly inclusive financial system. All of us do. We
have each come to this Forum because we are trying to figure out how, as
policymakers, we can foster successful financial inclusion models in our countries.
How can we make sure solutions are sustainable, systems built are credible that also
reach deeper to and especially the poorest? This AFI network is about these common
goals of financial inclusion.
‘From Nairobi to Bali’-Progress and Growth of AFI
Network growth
Your Excellency, As Chair of the AFI Steering Committee, I am proud when I look
back and realize how much progress our membership has made in “Bringing
smart policies to life” at national and global levels. Just one year ago, we
launched this network at the first Global Policy Forum in Nairobi, Kenya. That first
gathering galvanized the AFI network, provided clear priorities and direction for
moving forward and created a good platform.
Last year, I was proud to host policymakers from more than 40 developing countries
at the first forum in Nairobi. This year, I am thrilled by the nearly 50 countries
represented here in Indonesia. The AFI community has grown exponentially. In just
a year, central banks and key financial sector regulatory bodies from more than 58
countries have signed up as members. And institutions from a further 20 countries
have shown interest in joining AFI. Together, these countries represent 90% of the
world’s unbanked population. This expansion of the network builds a stronger,
broader policy community. Continuing to strengthen our network is one way we can
take financial inclusion to the next level.
AFI Support to members
Ladies and Gentlemen: AFI has grown for several reasons, but mostly, I believe,
because we are responsive to the needs of our members and are providing valued
services. AFI members have actively used the network to exchange ideas,
experiences, financial support and practical advice.
AFI is also providing the platform and channel for our members to participate and
shape the global financial inclusion agenda, such as the G20 financial inclusion
initiative. We are pleased to see the increasing engagement of the developing
countries in global discussions through the AFI platform.

How AFI as a network can ‘Take it to the Next Level’
Your Excellency, through the network’s activities, we have opportunities to create
and share innovations that can help to improve access to financial services, and take
financial inclusion to the next level. One of the questions we ask ourselves in the
Steering Committee is what can we, as policymakers, do to take Financial Inclusion
to the next level? What would this mean for AFI as a network and membership
organization?
Some of the key issues that we would like to address include informing policymaking by better data over time, making a contribution to achieving global financial
inclusion targets through national commitments and implementation, and ensuring
the optimal balance between financial stability, integrity and inclusion. The issues of
this AFI global forum will be taken up and implemented by AFI network members
led by the Steering Committee, I am sure your Governor has joint the AFI Network to
support the delivery of AFI aspirations to the next level.
Your Excellency, Ladies and Gentlemen: Before concluding my remarks, I
would like to underscore that we should not only focus on problems and needs in this
forum. AFI network does not prescribe what should be done but provides a network
platform to share experiences on initiatives that have worked and members are free
to adopt them through AFI network support.
We have each had some success in bringing smart policies to life. This forum is also
an opportunity to celebrate the many successes achieved in the last year as a
network, as regulators, as policymakers advancing financial inclusion and share our
successes with others. Sharing examples and setting precedents like this is yet one
more way that we can demonstrate policy leadership to the world—and take financial
inclusion to the next level.
Thank You.