njuguna ndung ’ u : the general principles for credit reporting – how they pertain to kenya closing remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the first annual meeting of the association of kenya credit providers, kenya school of monetary studies, nairobi, 19 november 2013. * * * mr. habil olaka, chief executive officer, kenya bankers association ; ms. marianne ndegwa jordan, chief executive officer, kenya tourist development corporation ; mr. timothy tiampati, acting chief executive officer, idb capital ms. mercy njeru, chief executive officer, kenya rural sacco societies union ; chief executive officers of licensed credit reference bureaus ; representatives of fsd kenya and usaid firm ; representatives of sasra ; representatives of various credit provider institutions ; ladies and gentlemen : i am pleased to note that you have just concluded the first annual general meeting of the association of kenya credit providers ( akcp ). i wish to congratulate the entire membership and particularly the secretariat and the newly appointed governing council for this milestone in the evolution of the credit information sharing program. indeed it is gratifying to note that since the launch of the association at the cis regional conference slightly over a month ago, some progress has already been made. the new association is already settling in well at ksms, which attests to the commitment of the central bank in playing its part in this very important initiative of sharing credit information by more credit providers. as you embark on implementing the objectives for which you have been set up, i wish to challenge you to strive to observe, from the very outset, the general principles for credit reporting developed by an internationally representative taskforce of the world bank and the bank for international settlements. the report issued jointly by the two bodies describes the nature of credit reporting elements of a credit reporting system that is safe, efficient and reliable. the report which consists of 5 general principles, 5 roles of key players and 5 recommendations for effective oversight are a good reference for credit reporting systems ’ policy and oversight. i encourage you to familiarise yourselves with those principles and strive to achieve full compliance. but in addition, there are country specific or peculiar characteristics that could be added to reflect our country characteristics and environment. ladies and gentlemen, allow me to lay some emphasis on the first of the 5 general principles that i believe speaks well to the mandate of akcp. it states that : credit reporting systems should have

fact that enhanced reliability of these new technologies is equally important. the above developments notwithstanding, central bank recognizes the fact that a sound legal framework plays a crucial role in the proper functioning of payment and settlement systems and the financial sector as a whole. to this end, a proposed national payment systems bill, 2007 has been forwarded to the attorney general ’ s office where it is undergoing final drafting to reinforce the existing general legal infrastructure that affects payment systems. the law will provide a legislative framework for governing the operations of national payment systems and payment instruments in kenya when enacted. it is important that legislation takes place when the infrastructure is in place and the players are prepared. it is our hope that this will be realized by end of the first quarter of next year. in closing, let me underline the central bank ’ s commitment to partnership with the banking industry in facilitating the development of a sound banking system with highly trained professionals that would improve the standards and mobilize the substantial resources required for our country ’ s development. finally, ladies and gentlemen, as we head towards the festive season, i take this opportunity to wish each and every one of you a merry christmas, a peaceful electioneering period and a prosperous new year. thank you.