REMARKS
BY
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GOVERNOR
CENTRAL BANK OF KENYA
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Governor’s Remarks at Opening of Stanchart’s Head Office – June 20, 2011
Your Excellency Honourable Mwai Kibaki,
President and Commander-In-Chief of the Defence
Forces of the Republic of Kenya;
Honourable Uhuru Kenyatta, Deputy Prime
Minister and Minister for Finance;
Mr. John Peace, Group Chairman of the Board of
Directors, Standard Chartered Bank;
Mr. Peter Sands, Group Chief Executive Officer,
Standard Chartered Bank;
Mr. Wilfred Kiboro the Chair of the Board of the
Standard Chartered Bank Kenya
Mr. Richard Etemesi, Chief Executive Officer,
Standard Chartered Bank Kenya;
Board Members present;
Staff of Standard Chartered Bank Kenya;
Distinguished Guests;
Ladies and Gentlemen:
I am delighted to join you on this auspicious
occasion in celebrating Standard Chartered Bank
Kenya’s 100th Anniversary. It is indeed a
momentous achievement for the bank and
perhaps to plan for the next 100 years will even be
more exciting. May I take this opportunity to

Governor’s Remarks at Opening of Stanchart’s Head Office – June 20, 2011
appreciate the presence of His Excellency the
President which gives this function great
significance and importance. Let me also
commend the Board, Management and Staff of
Standard Chartered Bank for steering the
institution from its formation in 1911, and for
successfully providing financial services to
Kenyans for the last 100 years.
Over the years, the Bank has achieved several
milestones with a number of strategic alliances
and acquisitions. These milestones have extended
the customer base, geographic reach and
broadened the product range that Standard
Chartered offers. The bank has strongly focused
on developing its franchises in Asia, Africa and the
Middle East through concentration on consumer,
corporate and institutional banking. In Kenya, the
bank focuses on two core business divisions,
Wholesale banking and Consumer banking. With
regard to its financial operations in Kenya, the

Governor’s Remarks at Opening of Stanchart’s Head Office – June 20, 2011
bank as at March 2011, was among the top 6 banks
with an asset portfolio of Ksh.149 billion, thereby
commanding a market share of 7.9 percent.
Customer deposits stood at Ksh.105 billion being
supported by a capital base of Ksh.21 billion, while
loans and advances amounted to Ksh.72 billion.
Your Excellency: Despite various shocks that have
hit the economy in recent years, the banking
sector continues to exhibit resilience. The sector
grew by 8.8% in 2010. Some indicators of the
financial sector performance witnessed in the last
twelve months to March 2011 are as follows:-
• The sector’s asset base expanded by 20
percent from Ksh.1.5 trillion in March 2010
to Ksh.1.8 trillion in March 2011 as banks
continued to expand their lending portfolio;
• The deposit base increased by 16.7 percent
from Ksh.1.2 trillion to stand at Ksh.1.4
trillion in March 2011 on account of branch
expansion, financial inclusion and domestic
economic activity expansion;

Governor’s Remarks at Opening of Stanchart’s Head Office – June 20, 2011
• The Total and Core Capital Adequacy to Total
Risk Weighted Assets Ratios stood at 21.1
percent and 18.9 percent, well above the
statutory minimum of 12 percent and 8
percent respectively, signifying the stability
of the sector;
• The sector’s pre-tax profits increased by 16.5
percent from Ksh.17.0 billion in March 2010
to Ksh.19.8 billion in March 2011 while the
average liquidity at end of March 2011 was
43.5 percent, well above the statutory
minimum requirement of 20 percent.
This impressive growth has been supported by the
expansion of banks into new market frontiers,
improved risk management and continuous legal
and regulatory reforms by the Government and
Central Bank in a bid to enhance financial
inclusion by reaching out to the unbanked
population.

Governor’s Remarks at Opening of Stanchart’s Head Office – June 20, 2011
Your Excellency, Ladies and Gentlemen: I would
like to assure the banking sector and stakeholders
that the Central Bank will continue to develop
cardinal policies aimed at financial inclusion,
development and deepening in consultation with
the market. So far we have seen the supply-side;
the deposit accounts solved. We need to make it
easier and cheaper to borrow and loan accounts
will grow from the current 2 million accounts
compared to 14 million deposit accounts. On the
demand side, demand for loans is lagging because
of costs.
The CBK will is to create a conducive business
environment for the sector to operate efficiently,
effectively and soundly. We continue to support
and build strong institutions both the commercial
banks and the regulator must be strong. Strong
institutions will always define the appropriate
incentives (and penalties) to encourage prudent
behavior in the market. We hope such measures

Governor’s Remarks at Opening of Stanchart’s Head Office – June 20, 2011
and the ensuing environment will of necessity
benefit clients of banks who have taken financial
inclusion seriously.
Your Excellency, Ladies and Gentlemen; Finally,
allow me once again to applaud Standard
Chartered Bank Kenya Limited on your Centenary
celebrations and wish the bank continued
prosperity in the future here in Kenya and in the
East African region as a whole.
It is now my honour and singular pleasure to
invite the Honorable Deputy Prime Minister and
Minister for Finance Hon. Uhuru Kenyatta to
make his remarks and welcome His Excellency,
The President.
Welcome, Honorable Deputy Prime Minister.
Thank You and God bless you all