some of these bottlenecks in the financial sector. innovations in technology that enable ict - empowered financial services platform coupled with conducive regulations have led to a large proportion of the previously unbanked population to be mainstreamed in the formal banking system. central banks in the region are committed to improving access to financial services and products to a much larger number of individuals and small businesses because it is good for management of both monetary policy and the stability of the financial system. bis central bankers ’ speeches your excellency, ladies and gentlemen ; the overall objective of this conference is to promote the development of smallholder and agri - business inclusive finance. to this effect, the conference brings together : 1. financial institutions to learn about innovative financial tools and products ; 2. farmers organisations that will help solve their members ’ financial challenges ; 3. central banks, ministries of finance, agriculture and other government agencies seeking to discover how to develop and strengthen an enabling environment, that will enhance financial access and unlock agricultural growth in their respective countries ; 4. ict developers willing to showcase their agri - finance innovations and build a strategic network ; 5. development practitioners and the academia who will share their experiences, get acquainted with new developments and challenges, and strike new partnerships. your excellency, ladies and gentlemen : banks all over the world are concerned with risk mitigation and appropriately pricing these risks. this is more pervasive in the agricultural sector. this forum seeks to address these issues by sharing experiences of innovations that are aiding banks, insurance companies and other financial institutions to safely reach out to such sectors and sub - sectors in sustainable ways. this is the model we would like to learn and enact in our economies. with these remarks, ladies and gentlemen, it is my honour and duty to once again welcome you all to the kenya school of monetary studies, and to our international guests, we feel very honoured to host you. i now wish to invite the chairman of afraca to give his remarks. thank you. bis central bankers ’ speeches

##banked or under banked, into the realm of the formal financial sector not only through their lending activities but also savings mobilization. lowering the cost of doing business : several modalities including establishment of three currency centers in towns outside the key kenyan cities to lower cash in transit costs for banks. cbk is also actively pursuing modalities of reducing the cost of establishing branch networks for deposit taking microfinance institutions, in addition to agency mechanism. ladies and gentlemen : as a result of cbk ’ s adoption of a new approach to regulating the financial sector through dialogue with the players and acting as a development agent, the kenyan financial sector has experienced a structural transformation. this transformation is evidenced by the following achievements : exponential growth of bank branches from 740 in 2007 to 1, 063 as at end of 2010. increase in the number of deposit accounts from 4. 7 million in 2007 to 12. 8 million as at end of 2010. increase in the number of loan accounts from 1. 2 million in 2007 to 1. 8 million as at 2010. bis central bankers ’ speeches licensing of five deposit taking microfinance institutions with 41 branches as at 31st december 2010, which had opened 1. 01 million deposit accounts with deposits worth kshs. 7. 90 billion ( usd 99m ). increase in the automated teller machines from 1, 012 in 2007 to 1, 940 as at 31st december 2010. banks contracting 8, 809 agents by december 2010. mobile money transfers increased their total transactions to kshs. 2. 3 bn or usd 29 m per day. well over 15 million kenyans have subscribed to mobile money transfers since their roll out in 2007. this is expected to increase especially with the confidence to be generated by the draft e - money regulations recently issued by cbk. mobile phone financial services have generated micro - savings accounts ( mkesho ) to the tune of over 700, 000 accounts with kshs. 678m in deposits. ladies and gentlemen : the structural transformation of kenya ’ s financial sector has not been achieved on a silver platter. there has always been the task of surmounting prevalent challenges. key among these is the need to balance the goals of financial efficiency, stability and integrity on one side with financial inclusion on the other. the pursuit of these goals requires delicate balancing given their importance. however, as already alluded, balancing of these goals is made easier when regulators embrace their new role of being a market developer in addition to their