the financial times. fdi into kenya by project numbers increased by 47 percent, reaching 84 announced projects, compared with increases in ghana ( 21 percent ), nigeria ( 19 percent ), egypt ( 14 percent ) and south africa ( 3 percent ). likewise kenya ranks high as a home country for fdi. in particular, fdi out of kenya by capital investment reached us $ 1 billion in 2015 placing it tenth in the middle east and africa region compared with u. a. e. ( us $ 21. 8 billion ), south africa ( us $ 2. 5 billion ), mauritius ( us $ 2. 1 billion ), and egypt ( us $ 1. 7 billion ). key trends on foreign inflows in 2015, reported in the economic survey, include : • fdi into kenya increased by 8. 4 percent to us $ 1. 5 billion in 2015 • portfolio investments declined from us $ 3. 4 billion to us $ 34 million in 2015 on the backdrop of the sovereign bond issuance in 2014 • other investment flows more than doubled from us $ 2. 2 billion to us $ 4. 6 billion in bis central bankers ’ speeches analysis by sector indicates that the top five recipient sectors of fdi inflows include : wholesale and retail trade, financial and insurance, manufacturing, construction, and electricity and gas supply. allow me now to touch on three global developments that are likely to have implications for foreign investment flows to our country. • first, the subdued global economic growth that has been worsened by the prolonged period of uncertainty relating to the slowdown and rebalancing of the chinese economy, lower commodity prices, and geopolitical developments and concerns surrounding “ brexit ”. consequently, global growth is now projected at a worrisome 3. 1 percent in 2016. the fact that central banks in advanced economies are maintaining an accommodative stance is a clear indication that the global economy has not yet recovered to sustainable levels. in addition, most of the emerging economies have faced volatile capital flows and exchange rates attributable to the accommodative policies, and the prospects of unwinding the unconventional monetary policies. • second, the ongoing divestiture of major international companies around africa, as reflected in a number of multinational enterprises downsizing their assets through outright sale and transfer to domestic companies, otherwise referred to as derisking. the main problem we observe with this process is the ambiguity and poor information flow on the measures by

for the year ended december 2011. this was a 20. 4 % increase from ksh. 74. 3 billion ( usd895 million ) returned in the same period in 2010. the number of banks is growing to create strong banks : mergers will be required, but that is a market outcome. ladies and gentlemen : i would like to assure the banking sector and other market players that the central bank will continue to support the market development by providing an enabling environment for growth in the banking sector. allow me to outline the thrust of the initiatives we shall continue to inculcate to ensure the sector operates efficiently, effectively and soundly. the initiatives will be anchored on three pillars : first, strengthening financial stability, supervisory and regulatory framework. in particular, cbk will adopt a consolidated supervision approach to take cognisance of the growing pan - african nature of the kenyan banking sector. bis central bankers ’ speeches second, enhancing financial integrity in the banking sector so as to ensure that the financial systems are safeguarded against money laundering and financing of terrorism. third, promoting financial inclusion for financial deepening and development in line with the aspirations under the kenyan vision 2030. distinguished guests, ladies and gentlemen : finally, allow me once again to applaud firstrand bank limited for establishing a physical presence in kenya through a representative office. as the central bank we are ready to support you as you develop your business not only in the kenyan market but also on the eastern african side. with these remarks, it is now my pleasure to welcome honourable njeru githae, minister for finance of the republic of kenya to make his remarks and officially launch the representative office of firstrand bank here in kenya. thank you. bis central bankers ’ speeches