CENTRAL BANK OF KENYA
Opening Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
JOINT CMA/CBK/RBA/IRA BOARD MEMBERS
SEMINAR ON COLLABORATION AMONG DOMESTIC
FINANCIAL SECTOR REGULATORS
The Great Rift Valley Lodge, Naivasha
Monday, July 20, 2009

Joint CMA/CBK/RBA/IRA Seminar, July 20 2009
Board Members,
Colleagues,
Ladies and Gentlemen:
1. I am happy to be with you during this important workshop on Joint
Collaboration between the Domestic Financial Regulators.
2. At the onset, allow me to congratulate the Board and Management of CMA
for hosting the 2nd Joint meeting for Board Members of Domestic
Regulators.
3. I am informed that the first Joint Board Meeting which CBK board
members did not get an opportunity to attend was fruitful. The proposals
that were made which include formation of a Technical Committee and
drafting of MOU to be signed by the four regulators are being implemented.
4. In this regard, I would like to take this opportunity to share with you a few
thoughts on the need for collaboration among regulators. First, I must
commend all the board members of the four regulators for the important
role you play in ensuring overall financial stability.
5. As you are aware our financial sector is becoming interconnected. Our
experience in Central Bank is that banks are rapidly spreading their
footprints across other sectors of the economy which are under supervisory
purview of CMA, RBA and IRA. Similarly, financial institutions have
expanded in the region as competition intensifies and as they follow their
customers who are also expanding their bases regionally. On the other
hand, Kenya is also seeing an influx of financial institutions from other
regions. With theses developments, the need to strengthen our cooperation
and partnership is therefore imperative.
6. The ongoing global financial crisis has only served to underline the interlink ages of financial system. Financial Regulators must therefore take a
consolidated and co-ordinated approach to the supervision of financial
institutions with cross sector and cross border operations. The sharing of
information among the regulators is one way of promoting financial
stability and therefore I take this opportunity to urge all of you to support

Joint CMA/CBK/RBA/IRA Seminar, July 20 2009
the initiatives being driven by the Technical Committee on Collaboration
among the Domestic Regulators. I trust that the draft MOU which I am
informed is already circulated to all the CEOs of the four regulators will
soon be executed to cement this collaboration.
7. Let me end with some examples of financial developments that tie us
together increasingly into the future and gives the MOU some important
strengths and implications: One is the Bond Market where we rely on CMA
for approvals and regulation; but we also rely on IRA and RBA are they
regulate those who invest in us. Secondly, the market development requires
new products to be licensed as the market innovates. Bancassurance is one
such product and I am sure others will be developed that cut across and
require revisions of the regulatory rules and procedures. Finally, for us to
make sure we have adequate information symmetry, the CBK will require
that you support our Credit Reference Bureau information capital building.
This is what will shape our market in future.
8. Being cognisant of the onerous task ahead of us, I shall not extend my
remarks any further.
THANK YOU FOR YOUR ATTENTION