segments of the population. microfinance banks have been able to expand their reach and depth cost effectively while ensuring the stability and soundness of the financial system. as the microfinance sector in kenya continues to grow and empower more microentrepreneurs across kenya, it is the success stories behind the numbers that prove the power of access to finance to transform and improve lives. it is a pleasure to see tangible proof that our collective public and private sector efforts have a powerful impact on kenyan households and msmes. therefore, as we celebrate the 4th annual citi microentrepreneurship award winners today, we celebrate efforts made by the key players in the financial sector in enhancing inclusive financial systems to serve kenyans with appropriate and sustainable financial services. in closing, let me salute all the worthy award winners. the recognition today should provide further impetus to deepen your commitment in your entrepreneurial initiatives. thank you bis central bankers ’ speeches

njuguna ndung ’ u : developments in kenya ’ s insurance industry sector remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the launch of continental reinsurance brand and products, nairobi office, nairobi, 5 july 2012. * * * the chairman, continental re, nigeria distinguished guests, ladies and gentlemen. many thanks indeed to continental reinsurance for having invited me here today at this auspicious occasion where continental re is launching its brand in kenya. it is extremely heartening to see such a strong attendance for this breakfast meeting. firstly, allow me to spend a few moments to reflect upon the future of the kenyan insurance industry based on my experience, and to provide some thoughts and advice on where reinsurers such as continental reinsurance can contribute additional value in the sector. the kenyan insurance market wrote kshs. 100 billion of gross direct premiums in the year 2011. it has grown at an average rate of 16 % p. a. over the last 5 years. the market comprises of 45 insurance companies, transacting long - term and short - term insurance business. in addition, there are over 140 insurance brokers operating in the kenyan insurance market. competition is strong and therefore clear market positioning is essential. i am standing here today wearing two hats : one, as regulator of the banking sector and secondly, as a board member of the ira. i have seen that there is a strong requirement for products that are driven by a real need from customers – products that appeal to a specific demand. i am happy to note therefore that the industry is addressing the matter of innovation and are designing new products particularly targeting the lower market. this is the way in which the insurance industry will be able to enhance the level of financial inclusion among the population. by way of example, let us look at the agricultural sector – which, comprises a vital 80 % of our economy with a 26 % contribution to gdp. insurance and reinsurance should play a bigger role in the development of the agricultural sector in kenya. i am sure that, weather - index micro insurance schemes are making a measurable impact where payouts enable farmers to recover from what would otherwise be financial disaster. for instance in august last year, 3, 380 farmers received compensation for the loss of their crops, totalling approximately kshs. 150 million. the transfer of weather risk away from these farmers to the international insurance markets strengthens the resilience of farmers and agricultural businesses to