Njuguna Ndung'u: Central Bank of Kenya's new website - improving
communication
Speech by Prof Njuguna Ndung'u, Governor of the Central Bank of Kenya, at the official
launch of the Central Bank of Kenya's new website, Nairobi, 1 September 2009.
* * *
Mr. Mutua Kilaka, Financial Secretary, Ministry of Finance;
Dr. Geoffrey Mwau, Economic Secretary, Ministry of Finance;
Dr. Bitange Ndemo, Permanent Secretary, Ministry of Information & Communication;
Board Members here present;
Distinguished Guests;
Ladies and Gentlemen:
You are all welcome to the launch of the new CBK website today. Let me at this early
juncture thank our Chief Guest, Mr. Mutua Kilaka for accepting to launch our new website
and to all our distinguished guests for joining the Central Bank fraternity in marking this
occasion.
Ladies and Gentlemen, it is important to note from the very onset that central banking has
undergone dramatic changes in recent decades and many central banks now post and
communicate their policies and forecasts in their websites. Conventional wisdom in central
banking previously held that monetary policymakers should say as little as possible and say
it cryptically. In recent years, the understanding of central bank transparency and
communication has changed dramatically. On its part, the Central Bank of Kenya has
employed a wide range of communication channels to ensure it efficiently and effectively
communicates with the market as well as target audience.
The launch of our new website today marks a major milestone towards the achievement of
the Bank's vision of becoming a world class, modern Central Bank. Our new website is also
part of the Bank's communication strategy aimed at improving Central Bank communication
platform and policy.
Ladies & Gentlemen, Central Bank communication is important for financial market
participants as it forms the basis for their extrapolations regarding current and future policy
actions that might impact the value of their financial assets. So far, communication between
the Central Bank and financial markets has worked fairly well. Market participants have learnt
over time to distinguish between information and "noise". The Central Bank, on its part, has
remained committed to provide markets with information while avoiding the "noise". It has
become increasingly clear to us that managing public expectations through effective
communication is a central part of monetary policy and indeed, of central banking. This is an
important aspect of formulating and communicating policy. Public expectations are more
likely to help foster economic stability when the public has a clear understanding of what the
Central Bank's goals are, how the Central Bank thinks the economy works and how it is likely
to respond to various economic circumstances. Our new website has been designed to
enhance communication with the financial and other markets by providing accurate and
timely information. The feedback mechanism demonstrated today will serve to ensure that
the Bank stays in touch with public expectations and is responsive to the needs of the market
and the general public. The new site also has a chart tool that will assist researchers and
students analyze time series and other information available on the website to track policy
and economic performance. We believe that our website should not only be a communication
tool but also a resource that adds value to those who visit it. We encourage our website
visitors to utilize these tools.
Ladies & Gentlemen, our communication with the public has to be simple, clear and credible.
The sole use of English in our communication has, unfortunately, disenfranchised a good
number of Kenyans who only speak and understand Kiswahili. The critical challenge we face
is in developing a communication infrastructure and strategy that will effectively communicate
to a wide audience. The development of a Kiswahili version on our new website is a first step
towards ensuring that the Bank is responsive to the demands of a target audience that
dominantly speaks the national language. On the strength of this initiative, the Bank will
consider publishing sections of the weekly bulletin and monthly economic review in Kiswahili.
We will also continue to publish exhaustive analyses and commentaries on our website and
offer assessments regarding future economic developments. The Bank also recognizes the
critical role that the media plays in educating the public on financial and economic issues.
Our new website has dedicated a link for media houses to access information that will
facilitate their role. It is encouraging to note that some media houses have published staff
commentaries and analyses carried on our website. This collaboration will ensure that the
public receives information that is complete and correct.
In conclusion, let me observe that in uncertain economic times, communication is not only an
instrument, it is also an asset valued by the public. The Central Bank, the media and other
institutions have an obligation to communicate effectively while being aware of the adverse
effects that misinformation can have on financial market participants, households and
businesses.
We have positioned our website as the primary tool for Central Bank communication and
encourage members of the public to visit it and give us their feedback. On our part, we shall
strive to constantly enhance our communication infrastructure to meet the demands of our
target audience.
With these few remarks, it is my singular honour to call upon the Mr. Mutua Kilaka, Financial
Secretary, Ministry of Finance to give his remarks and officially launch our website.
Bwana Kilaka. Karibu Sana.