future u. s. policy following the recent political developments. secondly, other measures are being implemented to improve the business environment, including investments in infrastructure such as the standard gauge railway, advancing the use of information technology in doing business, and ensuring security, among others. these initiatives are key to promoting competitiveness in the economy. in addition, the growing youthful and entrepreneurial population is a boon to the business environment. kenya is ranked the world ’ s third most reformed country in the world bank 2017 doing business report. the performance of the economy has remained strong, with growth expected at 6. 0 percent in 2016 from 5. 6 percent in 2015. on the contrary, growth in the major african economies has been weighed down in 2016 largely due to the slump in commodity prices. thirdly, the diversification of the kenyan economy in terms of export products and external markets is a major source of resilience against adverse external shocks. about 40 percent of kenya ’ s exports are to africa, while the economy is not reliant on commodities. the current account deficit has been narrowing, and is projected at 5. 5 percent of gdp in 2016 from 6. 8 percent in 2015 and 9. 8 percent in 2014. the improvement in the current account balance reflects improved earnings from exports of tea, coffee, and horticulture. diaspora remittances and receipts from tourism have also been resilient. the cbk foreign exchange reserves, which stand at 4. 8 months of import cover, together with the precautionary arrangements with the imf totalling usd1. 5 billion continue to provide buffers against short term shocks. fourthly, as you may be aware, the banking sector has continued to play a key role in the economy through mobilisation of savings and allocation of the resources to key sectors. the cbk is strengthening the banking sector to ensure greater transparency and stronger governance, and also to promote effective business models and innovation. the central bank continues to engage with financial service providers to introduce innovative solutions or products in the market in order to boost financial inclusion and lower the cost of financial services. the cbk is also closely monitoring the impact of the recent legislation to cap bank interest rates on the economy, while implementing additional measures to lower the cost of credit on a sustainable basis. let me now turn to some of the available investment opportunities, which in my view provide the diaspora with an opportunity to participate in the development of our economy. i am happy that these products leverage

njuguna ndung ’ u : brief remarks on kenya ’ s anti - money laundering and combating the financing of terrorism ( aml / cft ) regime remarks by professor njuguna ndung ’ u, governor of the central bank of kenya, at the antimoney laundering ( aml ) amlock event, nairobi, 28 october 2014. * * * mr. sandeep khapre, group ceo of bdo east africa ; chief executive officers of commercial banks and other financial institutions ; distinguished ladies and gentlemen : i am indeed honoured to be with you at this important event convened by bdo and 3i infotech. before i make my remarks allow me to thank the management of bdo for inviting me to this conference as a guest speaker. this event will showcase one of the globally known anti - money laundering solutions “ amlock ” which is offered by 3i infotech. i have also been made aware that amlock has been implemented by more than 80 clients in over 20 countries across the globe that also includes some of the kenyan banks. ladies and gentlemen ; as you may be aware, kenya ’ s anti - money laundering and combating the financing of terrorism ( aml / cft ) regime since june 2009 had been under review by the international cooperation review group ( icrg ). kenya was initially referred to the icrg for being a high risk area / jurisdiction and the absence of anti - money laundering and terrorist financing laws. over time kenya has addressed the deficiencies that led to the financial action task force ( fatf ) review process. some of the measures that have been undertaken include : enactment and amendments of the proceeds of crime and anti - money laundering act ( pocamla ), 2009 and its regulations – which among other issues provides for the criminalization of money laundering, establishment of an independent institution responsible for aml / cft issues – the financial reporting centre ( frc ). the frc ’ s objective among others includes assisting in the identification of proceeds of crime and the combating of money laundering. enactment of the prevention of terrorism act ( pota ), 2012 and its regulations – which among other issues provides for the criminalization of terrorism financing and the mechanism for implementing united nations security council resolutions with regard to terrorism financing. in may 2014, kenya underwent an onsite assessment by the africa / middle east regional review group to ascertain the extent to which the country had addressed aml / cft identified deficiencies