dimensions : access, usage, quality and impact / welfare. i will focus on the impact / welfare component which refers to financial health. the financial health of citizens is indeed where the rubber meets the road in terms of financial inclusion improving their livelihoods. 1 / 4 bis - central bankers'speeches whilst progress in kenya has been made on the access dimension of financial inclusion, much more more remains to be done on the other three dimensions of usage, quality and impact / welfare. the survey revealed increased usage of banking services particularly through mobile phones. however there are still gaps in usage of financial services between males and females, rural and urban users, among different age groups and users in different income segments. on the quality dimension of financial inclusion, as assessed on the basis of financial literacy and consumer protection, the survey indicated that 45 percent of respondents relied on friends and family members to get financial advice, with formal institutions playing a peripheral role. some of the challenges cited by respondents include : fraud through loss of money, unexpected transaction charges, lack of transparency in the pricing of financial services and products and system downtime. on the fourth dimension of impact on livelihood of those using financial services and products by household, the 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 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 indicate that the financial health of respondents deteriorated to 17. 1 percent in 2021, compared to 21. 7 percent in 2019. this implies that 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. globally, the world bank global findex database ( global findex ) revealed that in 2021, 76 percent of adults had an account at a bank or regulated institution such as a credit union, microfinance institution, or a mobile money service provider. account ownership around the world increased by 50 percent in the 10 years spanning 2011 to 2021, from 51 percent of adults to 76 percent of adults. notwithstanding this significant increase in global access to financial services, financial health remains of concern. in particular, only 55 percent of adults in developing economies could access extra funds within 30 days without much difficulty. friends

patrick njoroge : launch of banking industry financial literacy campaign remarks by dr patrick njoroge, governor of the central bank of kenya, at the launch of banking industry financial literacy campaign, nairobi, 8 june 2023. * * * as prepared for delivery good morning! i am pleased to be here at the launch of the banking industry financial literacy campaign. let me express my gratitude to the kenya bankers association ( kba ) for the invite and organizing this launch event. i note that the campaign targets the public particularly the youth to enhance their capacity to make sound and informed financial decisions. the context of the campaign is the vibrant financial sector. kenya's financial ecosystem has transformed significantly in the last decade and a half. from the traditional brick and mortar model, it has evolved to an elaborate anytime anywhere digital ecosystem stradling among other services : payments, credit, savings, insurance, capital markets and pensions. the 2021 finaccess household survey ( the survey ) indicated that the level of financial access has tripled from 26 percent in 2006 to 83 percent in 2021. commercial banks have also transformed dramatically. in the late 1990's, bankers used to say that there are about 2 million bankable kenyans. today, there are 73. 72 mobile money accounts and 64 million deposit accounts in banks. the survey estimated that 22. 2 million kenyans were using mobile money accounts, while 10. 2 million kenyans had bank accounts. before delving further on the question of the day, i want to ask why are we interested in improving financial literacy of the population? why is it important to a commercial bank, sacco, microfinance institution, payments services provider, and even the central bank? i fear as, simon sinek explains in his book " start with why, " we get caught up too often with the " what will we do and how will we do it " ( for instance, this campaign ) and ignore the all important question of why we are doing this. in my view, it is about lifting the population and giving them powerful tools for their prosperity and security. it is important that we reflect deeply on this, against the backdrop of a rather chequered history of the banking sector and our business community more widely. to set the stage for my remarks, it is important to first understand the key components of financial inclusion. broadly, financial inclusion refers to the participation of individuals, households and businesses in the financial system. the survey defines financial inclusion in four