##md will facilitate the growth of government securities by broadening significantly the investor base to retail investors. the second product is m - akiba. this is a critical government initiative, which seeks to increase the public ’ s participation in government securities through the existing mobile - phone bis central bankers ’ speeches money transfer services, and with a low minimum investment amount of us $ 30. the first m - akiba infrastructure bond will be launched shortly as the necessary arrangements are in the final stages, and is expected to mobilize ksh. 5 billion ( about us $ 50 million ). retail investors will be able to register, bid and pay for government securities through the existing mobile platforms. this will provide alternative investment options to retail investors who have long been poorly remunerated especially for their deposits held by banks. these products will be transformational – in addition to promoting financial inclusion, they will facilitate a change in the population ’ s savings culture, and ultimately lead to an increase in national savings. however, as the digital platforms continue to evolve, there are challenges and risks that need to be addressed. it is therefore important that countries continue to share experiences and strengthen partnerships based on best practices to address these challenges. the state of the banking sector in kenya finally, i would be remiss if i did not say a few words about the recent developments in our banking sector. in the main, concerns have been raised following the placing of three banks in receivership, since august 2015. we have underscored that the central bank ’ s actions were necessitated by unique circumstances in each of these banks, and that these were carried out in the interest of the depositors, creditors, and the wider public interest. we have also indicated that the weaknesses revealed by these cases are not systemic and the banking sector remains strong and stable. the capital - adequacy ratio stood at 18. 8 percent in march 2016, well above the statutory minimum of 14. 5 percent. the average liquidity ratio rose to 39. 8 percent in march 2016, above the statutory minimum of 20 percent and higher than 38. 1 percent in december 2015. nevertheless, some challenges remain. for instance, interest rates spread remain very high : the spread between the average commercial banks ’ lending rate and deposit rate stood at 10. 3 percent in march 2016. poor liquidity management and distribution remains a key concern, for which remedial actions are being taken. bank supervision is also being strengthened urgently. the central bank remains committed to

cooperation among regulatory authorities is essential. as regulators, we need to encourage and support transformation and innovation through better regulation instead of looking for avenues of more regulation. as per sir andrew crockett, better regulation is a regime that : can readily identify weaknesses and emerging vulnerabilities ; is capable of analyzing risks and adequately addressing pricing risks ; bis central bankers ’ speeches provides appropriate incentives ( penalties ) to induce prudent behavior in the market place ; but also to add in our case, the regulator is an agent of market development. better regulation encourages innovation and strong institutions to develop in the economy. cross border banking has its opportunities and challenges. as regulators, it is in our mutual interest to ensure the soundness and stability of our respective financial sectors. we should therefore play our rightful role in ensuring effective supervision of banking entities operating in our respective jurisdictions. we should also ensure that any systemic risk that may be posed by one bank operating in another jurisdiction is mitigated and promptly brought to the attention of the home regulator. the mou which we are signing today will thus enable us share a wide range of supervisory information on a more defined framework. ladies and gentlemen ; both mauritius and kenya are leading international hubs. mauritius is a renowned international financial centre for its offshore financial services. likewise, kenya, because of its leadership in mobile money transfer services, is now referred to as the silicon valley of africa. we can both learn from each other and share our respective experiences so as to increase the competitiveness of our markets as well as our financial institutions. the signing of this mou will therefore set forth a pragmatic approach for cooperation and the sharing of supervisory information. we accordingly look forward to building on the existing good relations between the central bank of kenya and the bank of mauritius and to a future of enhanced supervisory cooperation. i now invite governor bheenick to make some remarks before we proceed to sign the mou. thank you. bis central bankers ’ speeches