post poll crisis in january 2008. food inflation has been quite volatile and erratic since january 2007, increasing from 11. 8 percent to 15. 9 percent in december 2007, 44. 2 percent in may 2008 and declining to 24. 4 percent in july 2009. the volatility of food inflation was the highest during the period and using a measure of volatility stood at 10. 72 percent compared with 8. 98 percent and 6. 19 percent for fuel and transport & communication inflation rates, respectively. the monetary policy committee of the bank is concerned that the prevailing famine and drought in the country will result in a spike in inflation and so an appropriate policy response is required. the solution ; most studies have advocated for improved agricultural productivity as the most effective way of addressing food crises associated with higher international prices and food security concerns. but this has to be supported by an appropriate infrastructure for processing, storage and transportation of food. in this regard, it is our hope that this seminar will seek to achieve the following objectives : a ) agree on how best to report inflation. b ) review the sources, magnitude and structure of inflation in kenya, to gain a better understanding of its dynamics. c ) come up with feasible solutions to the food supply problem. d ) deliberate on possible action plans among key stakeholders to keep inflation low and stable. this seminar is therefore expected to come up with resolutions that would form a basis for a long term policy on domestic prices and food security in kenya. we still have to contend ourselves with a three - dimensional solution : food production ; food processing ; food storage and transportation. let me underscore the important role of partnership between the stakeholder - institutions represented here today in addressing the challenges of inflation. it is my hope that such partnerships will involve regular consultations, sharing information and strategies geared towards seeking solutions to supply constraints or challenges to food production and distribution with the overall objective of achieving price stability. this workshop should redefine and strengthen future partnership and the responsibility for each institution. on behalf of the central bank of kenya and the monetary policy committee, let me express my sincere gratitude to the presenters, discussants and all participants who responded to our invitation and have graced us with their presence at this seminar. i am sure they will provide a good platform to share information and discuss feasible solutions. ladies and gentlemen, i now take this opportunity to declare this seminar officially open. i wish you all fruitful deliberations. thank you.

njuguna ndung ’ u : hr challenges in the kenyan banking sector speech by prof njuguna ndung ’ u, governor of the central bank of kenya, at the opening ceremony of the joint kenya school of monetary studies ( ksms ) and comesa monetary institute ( cmi ) symposium for central banks ’ human resource directors, kenya school of monetary studies, nairobi, 24 january 2012. * * * hr directors here present ; coordinator of cmi, mr. ibrahim zeidy and specialists ; distinguished speakers ; invited guests : it is my pleasure to preside over the opening ceremony of this hr symposium, the first of its kind in the region, jointly organized by the kenya school of monetary studies and the comesa monetary institute ( cmi ). this is the first meeting and ksms are hosting. we thank comesa for having faith with cbk to deliver dmi for policy conveyance. at the onset, let me take this opportunity to extend a warm welcome to all participants from the comesa region and speakers from different parts of the world who have found time and joined us today. please feel very welcome and i trust you will find some time to enjoy the wonderful facilities available here at the school and enjoy some of the beautiful and fascinating sceneries of kenya. ladies and gentlemen : the 2008 global financial crisis, coupled with the ever changing macroeconomic environment presented a complex financial and economic global landscape that was a challenge to central banks the world over. it therefore became clear that although the core mandate of central banks remains price and financial system stability, there should be coordination of regulatory structures across the financial system in totality. the idea is that we should not impose more regulation but better regulation. what does better regulation entail? it is a system that : can readily identify weaknesses and emerging vulnerabilities is capable of analyzing risks and so adequately pricing risks provides appropriate incentives ( penalties ) to induce prudent behavior in the market place building strong institutions that can withstand shocks and give confidence to the market : strong institutions of the regulated and strong institutions of the regulator these pillars hinge on hr capital availability and application. the challenges call for enhanced human capital development to cope with this changing dynamic world. as hr directors, i want to encourage you to formulate capacity development initiatives to equip staff with necessary skills and competencies to effectively manage these challenges in a manner that guarantees a balance between efficiency and stability. ladies and gentlemen : for maximum impact, these initiatives must be