performance of agriculture and implementation of government reforms targeting priority sectors under the beta. 1 / 3 bis - central bankers'speeches turning back to our theme for today, the finance and insurance sector continues to be one of the key services sector driving kenya's economic growth. but much more can be done to expand the sector and further catalyse our country's growth. as you can appreciate, the finance and insurance sector is indeed the engine of the economy given its pivotal role in financing all the other sectors, and therefore, financial inclusion is critical for sustained and inclusive economic growth. in this context, i am glad to note that access to financial services has expanded three fold from 26 percent in 2006 to 83 percent in 2021, based on the 2021 finaccess household survey ( the survey ). we are currently in the process of updating the finaccess survey and look forward to the updated results later this year. the finaccess survey of 2021 revealed that while progress had been made on the financial access dimension with 83 percent of adults accessing financial services, much more remained to be done on the usage, quality and impact / welfare dimensions. this morning, i will focus on the impact / welfare component which refers to financial health. ultimately financial services and products have to impact on the livelihoods of those using them, thus the criticality of financial health. the 2021 survey employed a framework of financial health constructed from a composite index of three main life goals : ability to manage day - to - day needs. ability to cope with shocks. ability to invest in future goals. the aim of the survey was to determine the outcome of financial inclusion in terms of the resilience of the kenyan population and its potential for growth. the results of the survey indicated that the financial health of respondents deteriorated to 17. 1 percent in 2021, compared to 21. 7 percent in 2019, and 39 % in 2016. this implies that only 17. 1 percent of the respondents could adequately and comfortably meet their day - to - day needs, cope with shocks and had the ability to invest in future goals like saving for old age. the main driver of this deterioration was the inability to cope with shocks and challenges in managing their day - to - day needs. this deterioration was amplified by the covid - 19 pandemic that was at its height in 2020 / 2021. the timing of this financial literacy campaign that you are about to launch today, is therefore apt as we seek to enhance the financial

jacinta mwatela : regulation of microfinance in kenya speech by mrs jacinta mwatela, deputy governor of the central bank of kenya, at the stakeholders forum on the deposit - taking microfinance regulations issued under the microfinance act, kenya school of monetary studies, nairobi, 12 may 2008. * * * the chairperson, the association of microfinance institutions ( amfi ) ; the chief executive officer, amfi ; microfinance practitioners ; development partners ; distinguished guests and participants ; ladies and gentlemen ; it gives me great pleasure to be with you this morning during this important stakeholders ’ forum on the deposit - taking microfinance regulations, 2008 issued under the microfinance act, 2006 ( act no. 19 of 2006 ). these regulations set the stage for the implementation of the microfinance act and are expected to usher in a new dawn in the development of the microfinance industry in kenya as an integral part of the financial system. let me also take this opportunity to thank the association of microfinance institutions ( amfi ), all industry players and stakeholders for their collaboration, input and patience. i am aware that the delay in the completion of the drafting of the regulations and the appointment of the commencement date of the microfinance act has caused concern in the industry. the work on the regulations has been a considerable one and the challenges mammoth. however, good things, they say, come to those who wait. i therefore congratulate amfi and the entire microfinance fraternity for keeping the faith and staying the course and urge them to continue to be patient as the appointment of the commencement date and regulations are with the attorney general ’ s chambers for gazettement. this will be out shortly. ladies and gentlemen ; as you are aware the legal, regulatory and supervisory regime, spelt out under the act and regulations, will allow regulated deposit - taking microfinance institutions to offer a variety of financial services and products including savings mobilization, credit facilities and domestic money transfer, among others to kenyans. i expect that many microfinance institutions and potential investors will take the opportunity to establish deposittaking business in order to enhance access to financial services and products by kenyans. according to the finaccess study conducted in 2006, about 38 per cent of adult kenyans are un - served by our financial system indicating a huge market potential for the microfinance industry. the study shows that only 19 per cent of kenyans are served