economic development. closer home, regional integration efforts particularly the east african community ( eac ) have borne fruits with banks extending their reach across the region. the imminent operationalization of the african continental free trade area ( acfta ) is expected to create an africa - wide market with resultant benefits from economies of scale. financial markets have increasingly become global. in particular, the u. s. financial markets have become a global bellwether with an outsize influence including in emerging and developing countries. given the dominance of the u. s. dollar as a global reserve currency, we in the eac are not immune to the dynamics in the u. s. financial markets. global movements in the dollar exchange rate and interest rates are increasingly impacting our markets. on the one hand, as we expand our presence in the international eurobond markets, we are becoming increasingly vulnerable to movements in global bond yield curves. on the other hand, with a growing influence of foreign investors in our markets, we have to be alive to their short - term horizons and their potential flight to safety in turbulent times. nevertheless, there are other urgent concerns that must be recognized and attended to. the cost of globalization in terms of the industries that are wiped out and livelihoods that are altered, must be addressed. we have also seen the rise of nationalism in the last few years, particularly 1 / 4 bis central bankers'speeches in britain, europe and the united states, threatening to reverse the gains made by globalization. there has been an increasing retreat to protectionism as large segments of the populace particularly in the west feel excluded from the global economy. the covid - 19 pandemic has presented the two sides of the coin in this issue. on one side, the vaccine nationalism particularly by western countries has shown the ugly face of the retreat from globalization. on the other side, the pandemic has emphasized the need for global cooperation and coordination as no one is safe until we are all safe. we are certainly treading dangerous ground. second, is the proliferation of innovations and new technologies. from mobile banking to cloud computing, artificial intelligence to blockchain technology, internet of things, and robotics, all heralding significant opportunities to re - engineer the operations of governments and business and transform lives and livelihoods. even before the covid - 19 pandemic, digitalization had transformed the african financial sector landscape. in kenya, we had seen access to financial services triple from 26 percent of adults in 2006 to

patrick njoroge : bend but do not break keynote address by dr patrick njoroge, governor of the central bank of kenya, at the fourth annual bankers conference, organized by the uganda bankers ’ association, 27 july 2021. * * * as prepared for delivery good morning! i am honoured to join you at your fourth annual bankers conference. at the outset, let me express my gratitude to my brother governor mutebile, for inviting me to speak at this important conference. i also applaud uganda bankers ’ association ( uba ) for organizing the conference with the timely theme, how the financial sector can thrive in the era of the fourth industrial revolution. we are meeting virtually, but i recall uganda ’ s warm hospitality, beauty, and vibrancy. i am optimistic that we shall soon be able to meet physically, in the but also elsewhere. we convene at a critical juncture, firstly, having struggled globally with the ravages of the coronavirus ( covid - 19 ) pandemic for one - and - a - half years. secondly, we are at the cusp of the fourth industrial revolution, whose transformative powers are already evident in the financial sector, and will transform the way we live, work, and relate to one another. in the words of professor klaus schwab, who popularized this label : “ it is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres. ” 1 both these elements portend stormy times, for our way of life, society, families, and the institutions that we represent. but how should we react? we can attempt to stand firm, unyielding against these perils, and fully aware that they may destroy us. or we can accommodate some of the pressures with the grace of a palm tree, and build back better — bend, but don ’ t break. allow me to set the stage by highlighting three disruptive trends in the current global context. first, the entrenchment of globalization. this product of the third industrial revolution has redefined the terrain for governments, businesses and citizens, shortening distances and brought together disparate people in common markets. global supply chains have overhauled the traditional manufacturing and production processes with resultant efficiency gains. markets have increasingly opened up allowing businesses to expand their global footprints. the absence of a navigable route to the sea for uganda and other landlocked countries need no longer be a handicap to