njuguna ndung ’ u : revolutionising finance for agricultural value chains remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the opening ceremony of the international conference on “ revolutionising finance for agricultural value chains ”, kenya school of monetary studies, nairobi, 15 july 2014. * * * his excellency, hon. william ruto, deputy president of the republic of kenya ; her excellency, tumusiime rhoda peace, commissioner for rural economy and agriculture, african union commission ; hon. akinwumi ayodeji adesina, minister for agriculture and rural development, nigeria ; mr. henry rotich, cabinet secretary for the national treasury ; mr. felix koskei, cabinet secretary for agriculture, livestock and fisheries ; honourable ministers ; ambassadors ; development partners ; fellow governors and deputy governors of central banks ; distinguished ladies and gentlemen : it gives me great pleasure, on behalf of the central bank of kenya, the kenya school of monetary studies and on my own behalf, to welcome you to nairobi and to this conference on “ revolutionising finance for agricultural value chains ”. i would, like, first of all, to recognize the role of the technical centre for agricultural and rural cooperation for african caribbean and pacific countries ( cta ) in bringing together the stakeholders in agricultural and development finance to discuss this highly important development agenda. the conference seeks to share experiences on innovative models of financing agricultural value chains and to further explore opportunities and challenges in expanding financial inclusion to rural households. the objective of this conference is very much in line with the development goal of promoting inclusive growth and the facilitative role of the financial sector in achieving this goal. the presence of his excellency, the deputy president of the republic of kenya in this opening ceremony, goes to show the commitment of the kenyan government to the inclusive finance and growth objective. your excellency, ladies and gentlemen ; evidence shows that much of the gains in growth experienced in africa in recent decades have largely been driven by efficiency gains and not due to new investments in the productive sectors. achieving the growth targets envisioned in our national development objectives such as vision 2030, would therefore require unlocking the bottlenecks to growth. these include among others, increasing savings and investment ; improving the business environment ; closing the infrastructure gaps ; reducing telecommunications costs ; and formalizing the informal sector. in the last few years, kenya has made great strides in unlocking

alone. adequate housing is about access, which can be achieved not only through outright ownership, but also through the ability to rent a decent home at affordable prices. the overriding policy priority should not be ownership at all costs. we need to learn from the global financial crisis on the importance of a sustainable housing market. 2 / 3 bis central bankers'speeches policymakers need to protect the interests of the public and the stability of the economic and financial system. it is also in the interest of the public that they do not buy homes that they cannot afford and fall into financial hardship, which will have detrimental consequences to socioeconomic stability. more broadly, we need to remember that one of the best ways to achieve the affordable homes objective is to promote employment opportunities and income growth for the people. this will strengthen their economic capability and financial position for home ownership. to some extent, we have observed some encouraging trends, including the fact that house prices are now growing more in line with income growth. another important avenue for policymakers is the exchange of information and ideas. through the sharing of experiences, especially with policymakers from other countries, we are able to learn and explore new frontiers. platforms such as this contribute to the rich marketplace of ideas that will spur us to think of innovative policies and effective ways to implement them. tackling the issue of affordable housing requires us to be creative, proactive and holistic in our solutions. this will require collaboration and commitment from all parties involved ; policymakers, the private sector, developers and the public at large. it will not be easy, but it is necessary for us to build a better future not just for our families, but for our future generations. 3 / 3 bis central bankers'speeches