are segmented, requiring different and more specialized actors in some segments. dtms can be community based or nationwide with different core capital requirements of ksh. 30 million and ksh. 60 million, respectively. ii. agency banking effective 2nd january 2012, dtms were allowed to appoint third parties ( agents ) to offer specified dtm services on their behalf. this followed the successful rollout of agent banking by banks effective may 2010. so far eleven ( 11 ) banks have been granted approval to roll out their agency networks. eight ( 8 ) of these banks have appointed 11, 176 agents, which bis central bankers ’ speeches had executed over 18. 6 million transactions valued at over ksh. 93. 1 billion over the two year period to may 2012. iii. mobile phone financial services there has been tremendous growth in mobile phone financial services in the country. consequently, a number of institutions have initiated various innovations and new products to conveniently serve their customers and reduce the long queues that were previously experienced in banking halls. mobile phone money transfer services have been a phenomenal success and have put the country at the global centre stage of financial inclusion and innovation. in a country like ours with remote corners not served by financial institutions, mobile financial services has provided the answer. more importantly, our banks have easily integrated into their financial services with these technological platforms. the up - scaled level is now to use mobile phones to send money to savings accounts and credit provision through the same channels. this is already taking place with m - kesho type of products in the market. iv. credit information sharing the credit information sharing ( cis ) mechanism for banking institutions has successfully taken root with mandatory sharing of negative information on a monthly basis. all the 43 licensed commercial banks in kenya and institutions under the deposit protection fund board have been submitting negative credit information to the licensed credit reference bureaus ( crbs ) within the required timeframes. the banking act and the central bank of kenya act have now been amended to allow institutions licensed under both the banking act and the microfinance act to share both positive and negative credit information of their customers. this will go a long way in enriching the crbs database for the benefit of the entire banking sector and create objectivity in reporting. credit information sharing allows the market to build information capital for the financial sector in kenya. this will help build credit histories of borrowers and support a change of collateral technology in use currently. development of information capital will remove information as

njuguna ndung ’ u : essential groundwork for competing effectively in the islamic banking environment remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the launch of the regional certificate in participatory / islamic banking, kenya school of monetary studies, nairobi, 25 february 2014. * * * distinguished guests ; ladies and gentlemen : 1. it gives me great pleasure to be here today to officially welcome all of you to the launch of the regional certificate in participatory / islamic banking programme conducted by the kenya school of monetary studies in collaboration with the international center for education in islamic finance ( inceif ). inceif is the only educational institution in the world devoted to islamic finance. on behalf of the central bank of kenya, let me extend a very warm welcome to all the organizations represented here today. 2. the school has established a collaborative partnership with inceif to offer the exclusive certificate targeting members of staff at executive level in bank and non bank financial institutions offering lending services. in this collaborative arrangement, ksms is leveraging the expertise inceif has developed over the years in delivering a globally recognized certificate in islamic banking. further, it is important to note that the launch of the inceif program we are having here today is a culmination of concerted efforts by kenya school of monetary studies in developing solutions to problems faced by the region that are practical and relevant. 3. ladies and gentlemen : this program is designed to develop human capital in participatory / islamic banking in the comesa region. it is structured to provide an introduction of basic islamic principles governing financial transactions in order to establish a good foundation for the understanding of key operations in participatory / islamic banking. the program will change the islamic finance training landscape and enhance financial inclusion since the focus is definitely now on africa and particularly sub - saharan africa where consumer awareness of non interest banking or participatory / islamic banking is growing and the demand for this across bank customers. 4. as kenya and the region at large becomes an increasingly attractive destination for investments, the onus is on you, the financial industry players and financial institutions to tap into this tremendous potential in the area of islamic banking. as you know, with growth comes opportunities ; with opportunities, demand for engaging qualified personnel and developing training capacity for the drivers of the industry in technical and operational areas of handling and managing participatory / islamic banking based products for