cannot be achieved if the vision ’ s three core objectives, namely : enhancing financial system stability, efficiency, and expanding financial inclusion are not addressed. • without expanding inclusion to financial services, there is a case for expanding quality access and affordable, appropriate and sustainable financial services and products to majority of the population. this will inevitably increase their access and usage of financial markets and products that will encourage savings / investments and allow capital / asset accumulation. safe havens for savings by the poor reduces their vulnerability to periodic economic and social shocks and enhances their productive capacity. bis central bankers ’ speeches • the three national financial access surveys for 2006, 2009 and 2013 have clearly demonstrated that kenya ’ s financial landscape has changed considerably over the period 2006 – 2013. the financial system is now offering a wider range of financial services and products to more kenyans, covering a wider geographical spread, and even going beyond its borders more than ever before. these developments are attributable to expansions in financial sector infrastructure ( including innovation in products and adaptive institutional outreach ) and advances in technology. ladies and gentlemen : i am delighted to note that we have added the spatial mapping of financial services providers to the finaccess surveys by digitally mapping out all the financial access touch points in the country. this affords us more in - depth knowledge on how to address the challenges we face in expanding financial inclusion and ensure that the majority of our populace access and use affordable, appropriate and sustainable financial services. some of the insights we have gained from the mapping exercise include : • kenya enjoys better financial access compared to countries in the region. the percentage of the population living within a 3km distance of a financial access touch point is 58. 7 % for kenya, 44. 1 % for uganda, 42. 7 % for nigeria and 28. 3 % for tanzania. in terms of financial access touch points per 100, 000 people ; kenya has 161. 7, uganda 63. 1, tanzania 48. 9 and nigeria 11. 4. • financial services touch points tend to be located in economically active regions of the country : more in urban than in rural areas. in these areas use of portfolios of financial services is more prevalent. • financial services touch points locate away from areas of high poverty levels, for instance, 69 % of all financial access touch points are located in areas with the least likelihood of poverty even though only 30 % of the population live in those areas. • kenyans have greater access to mobile phone financial services providers compared

##amlg, we remain resolutely committed to fighting the double evils of money laundering and financing of terrorism. allow me for the next few minutes to wear my central bankers ’ hat as a regulator of the banking sector. from where i sit, i am acutely aware, that money laundering is a threat to both the integrity and stability of the banking sector and even the forex bureaus themselves. further, with increased globalisation, our banking systems are increasingly under close scrutiny by our international trading partners particularly with regard to anti money laundering legal and regulatory frameworks. ladies and gentlemen : in kenya, as i have alluded, we are in the process of enacting a comprehensive anti money laundering legislation. however, this is not to say that there are no measures in place at the moment to deter money laundering. the central bank, as both regulator and supervisor of banking institutions, has played a key role in ensuring that systems to combat abuse of the banking sector by criminal elements are in place. in 2000, the central bank of kenya issued guidelines to all commercial banks pursuant to the banking act on “ know your customer ” and “ customer due diligence ” procedures. the guidelines vest responsibility on the board of directors and management of banking institutions to : • establish appropriate policies and procedures to ensure the effective prevention, detection and control of possible money laundering activities and terrorism financing. • train staff in the prevention, detection and control of possible money laundering activities and terrorism financing. • ensure adequate identification of customers, their source of funds and the use of the said funds. the guidelines were reissued in 2006 following a review that took into account international developments and experiences of financial institutions in implementing the 2000 guidelines. key changes included : • strengthening of customer due diligence procedures. • providing additional guidance on identification of suspicious transactions by commercial banks. • introduction of guidance on customer due diligence procedures for non face to face transactions that have gained increased prominence with the growth in internet and telephone banking. we know that the rapidly changing technologies and the introduction of new financial products remains a major challenge which requires financial institutions and regulatory bodies to constantly remain vigilant of possible abuse of new products by criminals. the central bank continues to monitor adherence to the existing guidelines through its surveillance mechanisms and adopting them to the changing environment. kenyan banks have faced a number of challenges in implementing these guidelines. i am sure that these are challenges also shared in some of the countries represented here. in particular, some customer due dil