some difficulties emerged over the last year culminating in the placement under receivership of three banks ( dubai bank, imperial bank, and chase bank ). it is worth noting that none of these three banks was systemic, and the causes of the difficulties were unique to each of these banks. cbk, in liaison with kdic, has been working towards resolution of these banks. additionally, the cbk seized this opportunity to further strengthen the banking sector. these efforts have placed us in “ the new normal ” which is premised on three pillars : first, greater transparency on the part of banks. the cbk is requiring greater transparency on the part of banks to ensure public confidence. this entails among others ensuring that banks ’ financial statements are credible and reflect a true and fair view. transparency also extends to other disclosures by banks on their corporate governance and risk management structures. in this regard, cbk has enhanced the disclosures by banks on their significant shareholders. banks are now required to disclose details of significant shareholders who own 5 percent or more shareholding on their websites. bis central bankers ’ speeches shareholders are at the core of instilling corporate governance in banks. the disclosure of bank shareholders signals adherence to corporate governance as well as instilling confidence and stability in specific banks and the sector as a whole. at a minimum, the names, shareholding levels, composition of local and foreign ownership as well as group structures, for banking groups, should be disclosed. second, stronger governance with clearly demarcated responsibilities. it is only when all stakeholders of banks ( shareholders, board of directors, management and external auditors ) play their roles effectively that the performance of banks will continue on a positive trend. cbk has therefore insisted on clear demarcation of roles among bank stakeholders. on its part, cbk has been strengthening its supervisory practices including off - site surveillance to ensure that banks are truly practicing effective corporate governance. in 2015, cbk directed external auditors of banks to review the effectiveness of banks ’ ict infrastructure as well as insider lending practices. the feedback from these reviews has formed a good base for focused supervision on the sector. further, cbk will shortly be issuing a consultative paper for review and comments on proposals to limit tenures of non - executive directors and chief executive officers of banks. we all appreciate that unlimited tenures may breed complacency. we therefore encourage banks and all stakeholders to review our proposals when released, to ensure that the final guidelines are well - placed

njuguna ndung ’ u : the vision of the monetary affairs committee of the east african community address by prof njuguna ndung ’ u, governor of the central bank of kenya, at the 10th meeting of the east african community monetary affairs committee ( mac ), kenya school of monetary studies, nairobi, 24 may 2007. * * * mr. emmanuel tumusiime - mutebile, governor, bank of uganda ; mr. francois kanimba, governor, national banque du rwanda ; mr. juma reli, deputy governor, bank of tanzania ; mr. leonard sentore, vice governor, banque de la republique du burundi ; mrs. jacinta w. mwatela, deputy governor, central bank of kenya ; distinguished delegates ; ladies and gentlemen : on behalf of the central bank of kenya, and on my own behalf, i take this first opportunity to warmly welcome each and every one of you to nairobi, kenya, and to the kenya school of monetary studies ( ksms ), in particular. i wish to particularly welcome and thank governor francois kanimba of the banque nationale du rwanda and vice governor leonard sentore of the banque nationale du burundi, and their respective delegates, who are attending this meeting for the first time. ladies and gentlemen, to begin with, let me say that i am greatly honoured to attend and chair this meeting for the first time. i will therefore be falling back on the institutional memory of my brother governors who have been here long before me and who have a greater wealth of experience and an edge on monetary integration matters than i have. fellow governors, distinguished participants, you will agree with me that the coming on board of our two partner states of rwanda and burundi will foster the achievement of a large, powerful integrated east african economic bloc. this will of course be in accordance with articles 6 ( 2 ) and 44 of the abuja treaty that recognizes that achievement of the objectives of harmonisation of monetary, financial and payment systems and boosting intra - community trade in africa would be predicated on, among others, the strengthening integration efforts of the regional economic community and enhance monetary cooperation among member states for the eventual establishment of a monetary union in africa. we look forward to sharing our experiences in kenya, uganda and tanzania with rwanda and burundi in the next two days. fellow governors, ladies and gentlemen, the committee of experts have utilised their energies and minds for three solid days to discuss agenda