njuguna ndung ’ u : the agent banking model remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the launch of ecobank kenya ’ s rapid transfer product, nairobi, 17 june 2010. * * * mr. peter kanyago, chairman, ecobank kenya ; mr. anthony okpanachi, managing director of ecobank kenya ; board members ; management and staff ; distinguished guests ; ladies and gentlemen : i am delighted to have been invited to the launch of the new rapid transfer product by ecobank. i am informed that this new product will provide ecobank customers with a fast, convenient, reliable and secure way to transfer funds at all ecobank branches across 27 african countries, making ecobank a truly “ pan african bank ”. allow me at this juncture to commend the board, management and staff of ecobank kenya for the introduction of this new product that will not only enhance customer service but also boost trade across the african continent. the launch of rapid transfer product is indeed another milestone for the banking industry and demonstrates ecobank ’ s commitment to financial innovation. it is noteworthy that since ecobank kenya ’ s entry into the kenyan market in june 2008, the bank has grown its branch network from 9 to the current 20 branches including the head office. this indeed shows the level of confidence that the board and the management of ecobank have in the kenyan market. despite the various local and global turbulences experienced over the past two years, the banking sector continues to exhibit resilience and has remained strong. the impressive 2009 end year performance has been largely supported by growth in deposits, injection of capital, retention of profits and also declining costs of doing business supported by technology. during the period ended april 2010, the sector ’ s assets stood at kshs. 1. 5 trillion, with gross loans and advances at kshs. 799. 5 billion. deposits increased to kshs. 1. 1 trillion supported mainly by branch expansion, receipts from exports and remittances from abroad. at the same time, the banking sector registered a pre - tax profit of ksks19. 5 billion, in the four months to april 2010 compared to shs 48 billion in the twelve months of 2009. the sector is therefore likely to achieve better results this year compared to the previous year. despite the impressive performance by banks, customers continue to shoulder the heavy burden of high transactional costs. this historical burden has to

njuguna ndung ’ u : growing agriculture through finance remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at an interactive forum on “ growing agriculture through finance ”, at the kenya school of monetary studies, nairobi, 17 march 2010. * * * deputy prime minister & minister for finance, hon. uhuru kenyatta ; minister for agriculture, hon. william ruto ; us government representative – deputy chief of mission, mr. lee a brudvig ; ceos of commercial banks present ; resource persons ; distinguished participants ; ladies and gentlemen : it gives me great pleasure to be with you this morning, and to welcome you all as we deliberate and exchange views on this crucial matter of growing agriculture through finance. the agricultural sector is the livelihood of many in kenya. the sector contributes directly about 24 % of gdp, 65 % of the country ’ s export earnings and employs about 80 % of kenya ’ s labour force, directly and indirectly. but more important, food security is the most critical and cuts across all other developmental objectives. the policy paradigm that supports this sector is indeed the cornerstone of our development blueprint. it is tempting to say that financing agriculture will rely on the financial sector in totality. the subject is broader than this and this is what we want to generate via dialogue this morning. but what is not in doubt in financing agriculture is the presence of long - term funds as well as appropriate avenues to develop crop insurance. small - holder farmers have done well in increasing quality production and adoption of high yielding varieties, but have done poorly where they are not supported by cooperatives to market and create buffers for them. that is, they have been failed by lack of supporting agricultural infrastructure. a policy to support agricultural infrastructure should focus on : – financing production – crop insurance / crop finance – financing processing – investing in storage – investing in distribution and marketing networks – complemented with an appropriate credit policy. in this way, the farmer can participate in the market fully. this is what will ensure food security and stability of domestic prices – food is now accounting for 36 % of the consumer price index ( cpi ) basket – an important tool to fight national inflation. to that extent, increased agricultural productivity, particularly in food helps reduce food inflationary pressure that also feeds to the national inflation. in addition, gdp growth in this country is determined by growth in this sector. from the central bank side, our support in this initiative is important