central bank of kenya launch of the finaccess household survey 2019 report intercontinental hotel, nairobi keynote speech by dr patrick njoroge governor of the central bank of kenya 3 april 2019 1416 words good morning! today is a good day. not only because, it is one day closer to the rains which will bring some relief and transform the brown landscape to a lovely hue of green. today is a good day because it is one of those days when economics comes to life. often, we economists are in our own little corners, crunching away at some statistics, hoping that our work resonates with our fellow citizens. all too often, that hope does not get fulfilled. but sometimes, as it is this morning, our work has direct resonance with the vast majority of our people. it serves as a map for how they access financial services, and more broadly, the impact of policy on how kenyans live their lives. this is the fifth time we have done the finaccess survey. in every one of them since the first one in 2006, we have learned something new and profound about kenyans and their interaction with finance. this one is no different, and i will highlight some of the issues and conclusions that jumped out at me. but before i do that, let me tell you why we carry out the survey, and why it is some of the most important work that we do. globally, financial inclusion surveys have become an increasingly important source of valuable data and information that supports evidence - based policy and decision making. these surveys provide data that track progress and dynamics of the financial inclusion landscape ; and provide data to various stakeholders including policy makers, private sector players and researchers. i need not remind you, since it is something that we're consistently proud of, that we take the global gold medal in financial inclusion. so, for us kenyans, this is doubly important. even as we continue to appreciate the survey and what it does to aid policymaking, certain constants remain, well, constant. we continue to strengthen the measurement of the financial inclusion landscape in terms of access and usage, while incorporating new dimensions of a needs - based framework that measures the relevance of financial services and products, financial service providers and payments channels in meeting household financial needs. this survey also has new information on financial health and livelihoods, and perceptions on financial literacy and consumer protection. it thus measures aspects of quality and impact dimensions of financial inclusion. we at the central bank have

these products? what are these loans used for? how are the new emerging risk and consumer protection concerns handled? what is hindering rapid uptake of microfinance institutions ( mfis ), insurance and pension services and products? why do almost a third of kenyans still use informal sources – a ‘ secret hiding place ’, credit in form of cash and goods from a shopkeeper, and chamas? is there a policy gap we need to fill? how do we handle consumer protection concerns? should we be concerned that cash is still the dominant mode of transaction at about 90 percent, despite rapid financial technology and innovations? despite the rapid growth in financial inclusion, why is the financial health of kenyans still low at just one fifth of the adult population? there are also other challenges. accessing and using financial services and products still costs more than it should, locking out many. fraud is becoming an increasing concern, as are unexpected transaction charges. lack of transparency in pricing of financial services and products ; and unreliable market infrastructure mainly due to downtime for atms, point of sale ( pos ) devices and mobile money and electronic funds transfer ecosystems remain problematic, although we are attempting to address these systematically. these are issues we will ponder on in the coming days, weeks and months. before i let researchers, the media and the general public loose on this survey and its findings, one last thing. the datasets will be released through the knbs website, and you can find links on the cbk and fsd websites. this year, for the first time, we have created and made available a tool that will enable you interrogate these datasets. so, dive in! ask questions of the data, and share the answers the data gives you. the researchers have finished their jobs, and will now get a chance to have more than three hours of sleep a night, which they haven't done for many months. as a matter of fact, let me recognise them now – the director general and staff of the kenya national bureau of statistics ( knbs ), who also served a dual role of being the research house and a funding partner. it is the first time knbs played the role of a research house in the finaccess surveys, and the bureau has proved its capability by collecting high quality and comprehensive data. i am also indebted to the director and staff of the financial sector deepening trust ( fsd ) kenya for financial and analytical support