to evolve. on your question as to whether commercial banks do play a developmental role, my answer would be : yes, commercial banks have played, are playing and would play a much greater and much more proactive role in economic development. in this context, what needs to be addressed now is as to how to improve their contributing to economic development further, given the fact that their contribution to gdp is still below their potential. some of the thoughts outlined by me earlier deserve attention in this regard and provoke further thinking on the subject. yes, they need to do more. yes, they need to be innovative in order to increase their participation in economic development. yes, there still exists a wide financing gap. but that gap cannot just be filled by commercial banks alone. commercial banks may not have sufficient resources to provide long - term loans for investment purposes because of the structure of their balance sheets as explained by me earlier. other players do need to play their role as well, including the authorities. the challenge is for all of us to come up with workable but lasting solution. i thank you for your rapt attention.

patrick njoroge : entrepreneurial initiatives in kenya speech by dr patrick njoroge, governor of the central bank of kenya, at the 4th annual citi micro - entrepreneurship awards ( cma ), nairobi, 27 october 2015. * * * i am delighted to join you today for this important celebration, the 4th annual citi microentrepreneurship awards ( cma ). i would like to thank the organisers of the awards ceremony, citibank n. a. kenya, and the association of microfinance institutions ( amfi ), for providing an appropriate platform to celebrate extraordinary entrepreneurs in kenya. i also take this opportunity to appreciate all award nominees and participants of this event. you are all winners as the efforts you individually and collectively make in providing services to your fellow citizens are hallmarks of outstanding service. i commend citibank for the concept of the cma awards, and for consistency in hosting them. the objectives of the awards are noteworthy – not just celebrating innovative contributions of micro - entrepreneurs in kenya, but also showcasing the effective role that microfinance plays in supporting poverty alleviation, social empowerment and economic development within the broader context of financial inclusion. financial inclusion continues to play a critical role in the global development agenda given that over half of the world adult population does not have access to basic financial services, and is essential for developing strong financial institutions, reducing poverty, and financing broader economic development. in fact, there is ample evidence that financial inclusion is key in reducing the economic vulnerability of households, promoting economic growth, alleviating poverty and improving the quality of peoples ’ lives. the extraordinary narratives shared today confirm this. i am privileged to have heard the wonderful success stories of transformative growth and development that are being feted today. with regard to micro - small - and medium - sized enterprises ( msme ’ s ), there is a direct correlation between msme development and financial inclusion efforts. msmes represent over 90 percent of private business and contribute more than 50 percent of employment and of gdp in most african countries 1. nevertheless, msmes face several challenges, including access to finance, which is often considered the most significant constraint for this sector. for instance, the world bank enterprise surveys indicate that 41 percent of smes in low income countries report that access to finance is a major constraint to their growth and development, compared with 30 percent in middle - income countries, and only 15 percent in high - income countries. 2 these