for kenya : infrastructure bond program and the plan by the government to issue a euro bond in the current financial year also signifies that the domestic market has matured over time and gained confidence from both local and foreign investors. this is evidenced by the stable country ’ s credit rating and an attractive environment for investors. 5. automation of primary market processes : in an effort to enhance efficiency and safety of its operations, the central bank launched the t - 24 system in all its operations in april 2012. i would like to thank the stakeholders for being patient while the bank was experiencing challenges leading to the implementation of the new system. going forward the bank is working towards providing internet banking bis central bankers ’ speeches which will allow for services such as : online bidding faster dissemination of auction results and statements for government securities. 6. competitiveness at auctions : the use of an auction - based method in the issuance of government securities over the years has promoted price discovery and competitive prices at the primary market which is a key ingredient for the secondary market. 7. kenya government bond index : in october 2012, the nairobi securities exchange ( nse ) launched the ftse nse kenya shilling government bond index as a benchmark tool for measuring market performance. this was a great step in market development because the market now has the benefit of further opening up to the rest of the world and increasing kenya ’ s financial sector competitiveness. ladies and gentlemen, as you all know our success has not been without challenges along the way. just to mention a few, the slow pace of reforms particularly in the secondary market has promoted market illiquidity and hampered faster growth. but above all, economic vibrancy has been constrained by shocks in both the domestic and international environment beyond our control and this has at times affected the momentum of our market development. i wish to emphasize that a well - developed and proper functioning financial market is critical to economies all over the world as it enhances effectiveness of monetary policy, cushions the economy against external vulnerabilities while mobilizing long term financing for public and private sector development. therefore, the development of a robust financial market is not only a priority of the central bank of kenya but for every stakeholder in this market to embrace. towards this objective i urge all the stakeholders to continue to build a competitive bond market that supports the country ’ s development agenda under vision 2030. in cognizance with today ’ s theme of “ taking kenya ’ s bond market to the next

njuguna ndung ’ u : mefmi fellows department programme speech by prof njuguna ndung ’ u, governor of the central bank of kenya and chairman of the mefmi executive committee, during the 2007 mefmi fellows graduation & accreditation ceremony, harare, 31 july 2007. * * * your excellencies, governor reserve bank of zimbabwe, dr. gideon gono, executive director of mefmi, dr. ellias ngalande, distinguished invited guests, graduated and accredited fellows, ladies and gentlemen, 1. it is indeed a great honour and privilege for me to be here and witness this memorable occasion as we confer mefmi fellows in recognition of their hard work. congratulations to you all the graduated and accredited fellows! this occasion is especially memorable because of the presence of our distinguished guests ; the financial cooperating partners. your excellencies once more, you are very welcome to the mefmi family. ladies and gentlemen : allow me, on behalf of the board and indeed on my own behalf, to thank you for accepting to come to bear testimony to one of the significant outputs of mefmi. let me assure you of mefmi ’ s commitment in pursuing its objectives and ideals of building sustainable capacity in the region as affirmed by its leadership. i wish also to acknowledge the great hospitality the institute continues to receive from the governor of the reserve bank of zimbabwe, dr. gideon gono that enables us to convene effectively in harare. your presence here today, honourable governor, further demonstrates the very commitment you have for the intended success of mefmi. 2. ladies and gentlemen : mefmi fellows development programme was conceived as a flagship to address the capacity needs of the region in terms of the development of local and regional expertise. specifically the programme was set up to meet the following objectives : ( i ) to develop a critical mass of regional expertise in the priority areas of sovereign debt, macroeconomic and financial management, as a means to gaining sustainable and self - generating capacity ; ( ii ) to create sustainable regional capacity for delivery of mefmi capacity building products and services to answer the concerns about sustainability of the institute ’ s activities ; and ( iii ) to create regional capacity for complementing mefmi ’ s capacity building efforts at in - house level in mefmi member states ’ institutions. the fellows who have graduated today have gone through an intensive programme of customized training, professional exposure to renowned institutions