considerable progress has been made in licensing two dtms, the central bank is concerned at the slow uptake of this new avenue for microfinance institutions to be mainstreamed into the financial sector. we are therefore engaging the microfinance industry through its umbrella body the association of microfinance institutions ( amfi ). this engagement aims at identifying the bottlenecks for microfinance institutions some of which include : costs associated with roll out of branch networks and ict infrastructure. restructuring of shareholding of microfinance institutions to comply with shareholding restrictions specified in the microfinance act. the act restricts shareholding by an individual or entity to 25 % of the institution ’ s share capital. mfis are constituted in various forms including non governmental organisations and trusts. under the act, transforming mfis are required to be incorporated as limited liability companies registered under the companies act. the incorporation process takes considerable time and expense and may deter some mfis from applying for a dtm license. anecdotal evidence also seems to suggest a “ wait and see ” approach by a number of potential deposit taking mfis as they assess the experience and performance of the pioneer regulated dtms. the central bank would like to take upon itself the task of dislodging the “ waiting option ” from this sector of the market. the central bank of kenya is currently drawing up proposals for review of the microfinance legal and regulatory framework. i should stress that the bank will continue to consult with market players as this process moves forward. we therefore, look forward to drawing valuable lessons from this summit to enhance kenya ’ s microfinance legal and regulatory framework. we stand ready to advice, cultivate partnership and only regulate when rules are flouted. with these few remarks, ladies and gentlemen, it is now my honour to welcome the deputy prime minister and minister for finance, hon. uhuru kenyatta to make some remarks to this summit and to invite his excellency the president of the republic of kenya to officially open the africa - middle east microcredit summit. thank you.

to make clear what now you do not know. ” i offer some reflections on the way forward. it is important that innovators and financial service providers listen and understand the concerns of their prospective customers. this will generate a wider range of appropriately - designed financial products, based on customers ’ diverse needs and characteristics. these services will also need to be affordable by low - income households and vulnerable groups, and the consumers should also benefit from reduced marginal cost of additional digital financial services, as provided by the underlying technologies. going back to the example of art, the benefits of the artists ’ innovations would be felt more widely if more people can see and enjoy these masterpieces. in light of the successes in improving financial inclusion, more attention should be given to expanding financial services in the lagging areas. of particular importance is the extension of financial services to smes, women, and those living on us $ 2 to 5 per day ( the cusp group ). the latter group of consumers represent 23 percent of the population in sub - saharan africa, comprising of economically active persons in both the formal and informal sectors who lack meaningful assets and remain vulnerable. as an example of such targeted financial services, kenya will allow the public to purchase government securities through their mobile phone money transfer services, with a minimum investment amount of us $ 30. this will be transformational — in addition to promoting financial inclusion, it will strengthen the population ’ s savings culture and ultimately lead to an increase in national savings. standardization of technologies will likely yield benefits in the short term, but this should not be allowed to stifle the emergence of new technology. technological standards support the production process and market penetration of products, and thereby has a significant effect on innovation, productivity, and market structure. however, coupled with dominant leaders in the industry, this would increase considerably switching costs and network effects, and conflicting with the long - term objective of greater market access with evolving technology. innovations need to deal adequately with the risks arising from these financial services. the most significant risks currently relate to cybercrime and data privacy, even as customers navigate a landscape strewn with hidden risks. a number of other consumer protection concerns have also emerged, including : the lack of safeguards for funds held by non - prudentially regulated providers ; limited disclosure of fees, terms and conditions ; insufficient agent liquidity ; irresponsible lending through the digital channels ; and unclear or limited recourse in case of disagreement with the provider. what is clear