earners notably tea, horticulture and tourism exports are to the eu region. the government has already intensified efforts in the eac region to renew the epas. the diversification in kenya ’ s export products and external markets is expected to moderate any adverse effects of external shocks on exports. a significant share of kenya ’ s exports, about 40 percent, is exported to africa, and these economies are not dominantly reliant on commodity exports. we are also closely monitoring the impact of the recent elections in the u. s. on trade given that the u. s. accounts for about 7 percent of kenya ’ s total exports ; largely through the african growth and opportunity act ( agoa ) framework. before i conclude, i would like to reiterate that the cbk is strengthening the banking sector to ensure greater transparency and stronger governance, and also to promote effective business models and innovation. as you may be aware, the financial sector continues to support the transformation of our economy, and to contribute to economic growth. the cbk is closely monitoring the impact of the recent legislation to cap bank interest rates on the economy, while implementing additional measures to lower the cost of credit on a sustainable basis. these measures include promoting innovation in the banking sector leveraging on ict, and strengthening the credit reference bureaus to provide for a credit scoring framework. finally, ladies and gentlemen, allow me once again to applaud genafrica asset managers limited for organizing this forum. thank you!

1st annual genafrica asset managers limited conference leisure lodge, diani navigating through turbulent times remarks by dr. patrick njoroge governor, central bank of kenya december 2, 2016 as prepared for delivery good morning! i am indeed honored to speak before this distinguished forum. i would like to express my thanks to the organizing committee of this conference for the invitation to participate in this session, and to deliver the keynote address. let me also acknowledge the important role of the genafrica asset managers limited in the economy particularly with respect to pension fund management and property investment advisory. although your investment philosophy is to achieve investment returns without exposing clients ’ assets to unnecessary risk, we have seen heightened uncertainties in the domestic and global economies which require closer monitoring. the theme of this conference – navigating through turbulent times – resonates with the challenges that most emerging and developing economies are going through as they seek to deliver on their mandates of ensuring macroeconomic stability and promoting growth. these economies, kenya included, have become more integrated with the global economy, and are therefore exposed to external shocks largely through the linkages in the financial markets, foreign direct investment flows, as well as commodity prices. growth in sub - saharan african ( ssa ) region has been held back in 2016 by the weak global economy, the decline in commodity prices, and uncertainty in the financial markets. in particular, ssa growth is projected to decelerate to 1. 4 percent in 2016 from 3. 4 percent in 2015, and from an average of 5. 3 percent in the period 2010 – 2014. this is the slowest growth for the region in twenty years. the outlook for the global economy is confounded by uncertainties around the impact of brexit and political developments in the u. s. given these risks, and in line with the theme of this forum, i would like to provide some highlights on the outlook for kenya ’ s economy, and to outline some of the measures we are implementing to mitigate the risks. kenya ’ s economy has remained strong, growing at an average of 5. 6 percent during the period 2011 - 2015, which was higher than the ssa average growth of 4. 3 percent. the growth averaged 6. 1 percent in the first half of 2016 and is projected at 6. 0 percent in 2016, up from 5. 6 percent in 2015. this outlook is underpinned by continued public and private sector investment, strong agriculture performance, increased private consumption, and