Njuguna Ndung'u: Compilation and harmonization of monetary and
financial statistics in the East African Community
Remarks by Prof Njuguna Ndung'u, Governor of the Central Bank of Kenya, at the opening
of the workshop on the harmonization of monetary and financial statistics in the East African
Community, Nairobi, 29 March 2011.
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Mr. B. Rajcoomar, Chief of Financial Institutions Division, IMF;
Mr. Jaroslav Kucera, Senior Economist, IMF;
Mr. Thomas Morrison, EDDI Project Manager, IMF;
Mr. Robert Maate, Senior Statistician EAC Secretariat;
Distinguished Participants;
Ladies and Gentlemen;
I welcome you all to Kenya and to this very important workshop on the compilation and
harmonization of monetary and financial statistics in the East African Community (EAC). I
thank you all for attending this workshop.
Ladies and Gentlemen,
This workshop is taking place at a critical stage in the integration process of the EAC and
monetary and financial statistics play a critical role. This will support the institutions to be
formed under the regional integration process. Previous milestones achieved comprise of the
establishment of an EAC Customs Union and the launch of the Common Market Protocol.
These developments, Ladies and Gentlemen, underscore the need for a statistical
harmonization framework and related capacity building strategies for the region.
The success of the regional integration initiative is anchored on a number of convergence
criteria that require information and analysis: In this regard, the computation, concepts,
definitions and methods used in compiling the indicators that determine the convergence
criteria must be understood, harmonized and consistent across all Partner States.
Furthermore, since the EAC regional integration initiative envisages a centralized approach
to the policy making process, it has to be anchored on appropriate and adequate indicators
and centralized statistical information. Thus the harmonization of monetary and financial
statistics, among other statistics, will be critical for policy formulation and implementation
within the EAC region.
In fast-tracking the process of statistical harmonization among the Partner States, the EAC
Central Bank Governors recently approved the hiring of short-term consultants from among
Partner States. I am aware that the consultants have begun work and we believe this
workshop has come at the most appropriate time so as to complement their efforts.
Ladies and Gentlemen,
Towards this end, I want to thank the International Monetary Fund (IMF) for the Technical
Assistance they continue to provide in the development and harmonization of statistics, in the
EAC region. About two years ago, most of our countries concluded the second phase of the
General Data Dissemination System (GDDS) project which was aimed at improving the
availability and quality of data, in developing countries. This was important in order to
conform to international standards. Some of the major achievements of the monetary module
of this project include the correct classification of key financial assets and liabilities and
sectorization of transactions for the main deposit taking institutions in our financial sectors.
The end result was the compilation and filing of standard reports by most of the EAC
countries with the IMF Statistics Department.
Again I recall that towards the end of last year, the IMF approached most of our countries to
consider joining the Enhanced Data Dissemination Initiative (EDDI). The focus of the EDDI is
to consolidate the gains realized under the GDDS while expanding the institutional coverage
in statistical compilation to include other deposit taking institutions such as SACCOs and
microfinance; and other key financial sector institutions such as pension funds and insurance
companies. I am aware that the work plans were prepared during the first EDDI workshop in
Kampala and the IMF has identified technical experts for each of our countries. This
workshop is therefore part of the greater plan towards the improvement of statistics in the
region by the IMF. I wish to sincerely thank the IMF for these initiatives.
It is only appropriate at this juncture to recognize, Ladies and Gentlemen, the critical role
that the EAC Secretariat has played in providing an elaborate roadmap on how statistical
harmonization can be achieved within the EAC region. However, for this to succeed, an
appropriate mechanism, in terms of institutional arrangements and legal frameworks, has to
be put in place to guard and guide the production of harmonized and quality statistics in the
EAC Partner States and more importantly, at the regional level. These statistics will inform
policy formulation and implementation in the integration process.
All countries have their own data collection, storage and processing centres. It is a question
of how we can pick the important aspects from our own areas for use, standardization and
centralization.
Ladies and gentlemen,
In concluding my remarks, I welcome you once again to Kenya and to this workshop. Though
the duration of the workshop is short, please find time to visit some of our beautiful sceneries
around town and sample what the City of Nairobi has to offer.
It is now my pleasure and humble duty to declare this workshop officially open.
Thank you.