, the central bank has, in consultation with the kenya bankers association, prepared relevant regulations, which will soon be gazetted in order to provide a framework for the licensing and operation of credit reference bureaus under the banking act. we will expect banks to make effective use of this mechanism as a credit analysis tool before extending any credit. 8. the central bank recognises the need to bring the legal framework for regulating the banking sector up to speed with international developments. in consultation with the ministry of finance and the kenya bankers association, the central has undertaken a comprehensive review of the banking act in order to align it to the best international practices and address some of the weaknesses which have been identified over time. we anticipate that once enacted, the legal framework will provide a conducive environment for a more robust banking sector. 9. allow me to conclude my remarks by appealing to banks to explore ways of enhancing the efficiency in service delivery. by enhancing efficiency banks are capable of offering more affordable banking services. this has the potential of drawing a larger number of kenyans to the financial system resulting in an expanded banking clientele. following the recent study on cost of banking services, the central bank will soon be launching the results of the survey and a sensitisation program to educate the public for more effective market discipline. we believe that these measures will encourage efficiency in the banking sector and resultant lowering of bank costs for the benefit of both the banks and the economy. 10. finally, let me extend my gratitude to the board of directors for inviting me to be with you on this auspicious occasion of the opening of the nakuru branch of fina bank. 11. it now gives me great pleasure and honour to declare the nakuru branch of fina bank officially open. thank you all for your attention.

concerted efforts are underway to recover stolen assets under the star initiative, i would like to urge the participants to this seminar to undertake a comprehensive analysis of the expected benefits of capital flight repatriation, but also the potential risks and risk mitigation strategies associated with such an effort. additionally, i welcome the emphasis of the seminar on the possible causes of capital flight. over the past few years, a number of economists have singled out portfolio diversification motives, political and macroeconomic instability, particularly conflicts and macroeconomic volatility, fiscal deficits and expected devaluation of local currencies as some of the main causes of capital flight. however, recent data which suggest that capital flight has continued to grow unabated even in recent years, where fiscal deficits and macroeconomic volatility have been jugulated, suggesting that there may be other determining factors, particularly, corruption and poor governance. let me illustrate this point further by taking you all the way to the america, to haiti, the first black republic in the world. prior to its independence in 1804, william pitt, the uk prime minister, referred to haiti as the “ eden of the western world ” for its wealth and production. then, haiti ’ s production accounted for more than one third of france ’ s foreign trade, and its own foreign trade equaled that of the newly born united states. the haiti that was so much coveted a couple of centuries ago is certainly not the one we all know today. why? it has become a country saddled with external debt burden, excess capital flight and recurrence of conflicts. “ the haitian debt was accumulated not to finance productive investments, but to finance the government ’ s patronage employment and large military and police forces. corruption has been endemic, so there is a suspicion that some of the proceeds of foreign loans found their way into the pockets of the rulers and foreign bank accounts. this is a description of haiti ’ s experience in the 90s. ” however, the 90s to which these facts refer are not the 1990s, but the 1890s. i do not believe that there is a fatality in the path to underdevelopment or poverty trap for countries located below the tropics as a number of economists have alluded to in the literature on post - conflict and economic geography. many countries in the developing world, including africa, have gone through the cycle of external indebtedness, corruption and capital flight, and external debt in a continuing loop. however,