Njuguna Ndung'u: Currency Centres in Kenya
Remarks by Prof Njuguna Ndung'u, Governor of the Central Bank of Kenya, at the launch of
Currency Centres in Kenya and the official opening of Meru Currency Centre, Cooperative
Bank, Meru Branch, 19 August 2011.
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The Deputy Prime Minister and Minister of Finance, Hon. Uhuru Kenyatta; The
Provincial Commissioner, Eastern Province, Ms. Claire Omollo; The MP for North
Imenti, Hon. Silas Ruteere; His Worship the Mayor of Meru, Councillor Mr. Mwalimu
John; The District Commissioner, Imenti North, Mr. David Cherop; The Chief Executive
Officer, Co-operative Bank Kenya Limited, Mr. Gideon Muriuki; The Chief Executive,
Kenya Bankers Association, Mr. Habil Olaka; Commercial Bank Chief Executives and
their Branch Managers here present; Distinguished Guests; Ladies and Gentlemen:
I am greatly pleased and appreciative once again to witness another milestone achievement
of the collaborative effort between the Central Bank of Kenya and the Kenya Bankers
Association, that is , the launching of Currency Centres concept in Kenya and the official
opening of Meru Currency Centre by the Deputy Prime Minister and Minister for Finance.
Honourable Deputy Prime Minister and Minister for Finance, the banking sector has
undergone major transformation in the last five years in light of changing consumer needs.
The most notable changes have been the rapid expansion of branch networks, increase in
client accounts and in the number of Automated Teller Machines (ATMs) across the country,
use of agents and mobile phone infrastructure by banks to provide financial services and
increased outsourcing of cash processing and movement services. These developments
have significantly impacted on currency circulation patterns in the country making it inevitable
for the Central Bank and commercial banks to review how these operations can be
conducted cost effectively.
Honourable Deputy Prime Minister, the Central Bank of Kenya in conjunction with the Kenya
Bankers Association embarked on establishing Currency Centres two years ago. This was
done as a way of supporting commercial banks to efficiently provide financial services in
various regions of the country and reduce the distance over which cash is moved between
one Central Bank Office and the upcountry branches of commercial banks. The main
objective is to reduce cost of doing business.
Honourable Minister, the first Currency Centre under this initiative was established in
December 2009 in Nyeri followed by Nakuru Currency Centre in December 2010 and Meru in
February 2011. The three Currency Centres currently serve a total of 172 commercial
banks' branches and account for over 12% of the total currency activities in the country. As
the Banking Fraternity looks forward, the lessons learnt from these three centres will inform
policy and strategies for the next phase of this initiative.
Honourable Deputy Prime Minister and Minister for Finance, in finalizing my remarks, allow
me to express our appreciation to the Government for the continued support to the banking
sector initiatives. Notable areas of these initiatives are: Mobile Financial Services Platform;
establishment of Credit Information Sharing Framework, establishment of Agency Banking;
operation of Deposit Taking Microfinance Institutions and more recently, the Cheque
Truncation System. These initiatives have been rolled out under the background support of
the Government and more specifically the Ministry of Finance. The Central Bank of Kenya in
collaboration with the Kenya Bankers Association will continue working hard to make a
positive contribution for the prosperity of our country and to make Kenya investors' financial
hub of choice.
With these few remarks, it gives me great pleasure to invite the Deputy Prime Minister and
Minister for Finance, Hon. Uhuru Kenyatta, to address this occasion, officially launch the
Currency Centres Initiative in Kenya and formally open Meru Currency Centre.
Thank you