debt to gdp ratio at about 4. 2 percent in 2014 is still low compared to peers such as south africa and namibia where the ratio is above 20 percent, and developed countries such as the u. s. market where the ratio is over 70 percent. this may be attributed to the high mortgage rates averaging 17. 5 percent in 2015, collateral requirements, difficulties with property registration and high incidental costs of borrowing among other factors. nevertheless, there is reason for optimism. i am pleased to note that players in the real estate sector have embraced the aspirations engraved in kenya ’ s economic development blueprint vision 2030 on attaining “ adequately and decently - housed nation in a sustainable environment ”. this will ensure that the real estate sector and other players remain vibrant in provision of affordable and adequate housing ; enhancing access to finance for developers bis central bankers ’ speeches and buyers ; pursuing targeted reforms to unlock the potential of housing and initiating nationwide urban plans and development campaigns. a number of initiatives have been undertaken to enhance the uptake of mortgage in kenya. allow me to mention a few ; • amendment of the banking act in 2010, which allowed mortgage finance companies to advance up to 40 percent of their total deposit liabilities, from the previous limit of 25 percent for purchase, improvement or alterations of land. this unlocked funding to finance the real estate sector. • enabling issuance of corporate / housing bonds, through which commercial banks can mobilize long term funding to strengthen the mortgage market. • implementing credit information sharing mechanisms. commercial banks and microfinance banks are now able to access the credit history of borrowers on a real time basis, helping address information asymmetry which often stifled lending. • greater transparency and competitive pricing of loans and mortgages. the central bank of kenya ( cbk ) continues to urge banks to reduce their operating costs and enhance transparency in the pricing of credit. in this respect, the cbk has commenced the quarterly publication of individual banks ’ lending rates across loan categories and maturities. the housing sector in kenya has also attracted the attention of the diaspora who have been remitting funds to acquire or build assets for their retirement or their future housing. along with this dynamism, is the major increase in demand associated with the expansion of the towns housing county capitals. much more work needs to be done. i am sure your deliberations will offer many useful ideas and innovative solutions. on our part, the cbk will continue to support initiatives and innovations aimed at reducing cost

njuguna ndung ’ u : growth and performance of the kenyan banking sector remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the launch of southern credit banking corporation ltd international mastercard debit card, nairobi, 10 august 2009. * * * chairman ; managing director of southern credit banking corporation ; board members ; management and staff ; distinguished guests ; ladies and gentlemen : i am delighted to be here this morning to join hands with the family of southern credit banking corporation ltd in celebrating the launch of its mastercard debit card. allow me at the onset to appreciate the presence of the mastercard representative assistant vice president : commerce development, mr. charlton goredema. i also wish to salute the board, management and staff of southern credit banking corporation for successfully serving kenyans in the last twenty seven years. i am pleased to note that your bank has expanded its network from the two branches at incorporation in 1982 to nine branches countrywide and has been in the forefront of innovations in electronic payments solutions in kenya, a position that it first achieved with their senator card brand. today, the bank is becoming a market leader with the launch of the first mastercard debit card in kenya and also in the region. it is also one of the only three banks in kenya with the acquirer status on the mastercard franchise. the service will enable the bank ’ s existing customers transact business at more outlets, at their convenience, anywhere in the world. i commend the board for this. ladies and gentlemen ; this new service will provide an expansion of kenya ’ s card market segment which is currently thin and requires patronizing by many of the bank customers. similarly, the new product will go a long way in deepening the financial sector by facilitating payments. mr. chairman, let me turn to growth of the banking sector and its performance, one of the main pillars of kenya ’ s economic growth. ladies and gentlemen ; despite the local and global turbulences experienced over the past one year, the banking sector remained stable and exhibited resilience. the sector has continued to grow and expand both locally and regionally to new markets within the east african region and beyond. in addition, banks are posting good results for their second quarter ending june 2009. we commend the banking sector for the efforts in weathering storms of the global financial crisis and our own share of internal shocks. mr. chairman ; let me at this point mention some