##ly : we face the challenge of ensuring that both lenders and borrowers are sufficiently sensitised on the merits of a robust credit information sharing mechanism and are able to use it to their advantage. this calls for well thought out awareness campaigns and capacity building programs. it is particularly important that lenders develop skills that enable them apply credit management tools as effectively as possible so that low - risk customers are rewarded appropriately. finally, the success of this process hinges on a robust legal framework that supports a full - file comprehensive data sharing mechanism. we need to develop an effective legislation that addresses all aspects of credit bureau operations, data management and consumer protection. the challenges in the current system call for collective efforts by all stakeholders. i am pleased to report that cbk and kba through the kenya credit information sharing initiative ( kcisi ) is keen to establish modalities that make the cis mechanism more comprehensive. indeed, we continue to receive requests from non - bank lenders to be allowed to participate in the mechanism. further, the presence of key players in the credit market in this room today is a testimony to the high interest this mechanism has generated. ladies and gentlemen : as i conclude, let me take this opportunity to thank fsd kenya, our development partner in several projects aimed at inclusive financial markets in kenya ; world bank ; kenya bankers association who have been partnering with us in this initiative ; and all market players who have played key roles in this process, but more importantly those who came here today to take part in the launch of the second phase of the kenya credit information sharing mechanism. i do believe that with your support we can achieve the desired results of the second phase and that the ambition of developing a fully - fledged financial infrastructure will become a reality soon in kenya. with these few remarks, i wish to declare the second phase of the credit information sharing project officially launched. thank you all and enjoy the evening! bis central bankers ’ speeches

interest of determining how credit affects aggregate demand, a clear understanding of what motivates the private sector to seek bank credit enables the industry to react in a timely manner. and by identifying constraints, it can propose modalities for overcoming them. at the top in this agenda is to link it to investment. is our investment constrained by credit? we need to know more. ladies and gentlemen : the body of research work arising from the conference ’ s theme will obviously not be definitive ; but it will surely provide a good platform for reflection on the many ways through which the banking industry is readying itself towards further enhancing its role in the economy ’ s progress. there is also a possibility that ideas will emerge which have a quick response that can be put into practice in the short run ; furthermore, there is an opportunity to pick areas for further investigation. i am confident that the banking industry, that has remained stable on the back of the steady growth seen over the past decade, will continue to play an important role in supporting the various economic sectors through provision of credit. with an asset base of ksh. 2. 70 trillion as at the end of december 2013 compared to ksh. 2. 33 trillion as at the end of 2012, the industry is clearly maintaining the growth path. similarly, customer deposits grew by 14 percent in the period from ksh. 1. 71 trillion to ksh. 1. 94 trillion. the banking industry ’ s asset growth of 16 percent between 2012 and 2013 at a time when the economy ’ s real growth rate was less than 5 percent points to the possibility of the acceleration of the growth momentum emanating from finance. that growth will be accelerated once the overall cost of doing business that is being addressed, declines. this will ensure that the underlying asset quality accompanying the growth in the banking industry remains good. as a country, we are making strides in ensuring that financial inclusion is enhanced. the finaccess 2013 survey results revealed that kenya ’ s financial inclusion landscape has undergone considerable improvement. the proportion of the adult population using different bis central bankers ’ speeches forms of formal financial services was at 66. 7 percent in 2013 compared to 26. 4 percent in 2006. this is a notable achievement. the proportion of the adult population totally excluded from financial services has declined to 25. 3 percent in 2013 from 38. 4 percent in 2006. similarly, the proportion of kenyans accessing informal financial sources dropped from 35. 2 percent in 2006 to 7. 8 percent