component. the kenya school of monetary studies as the capacity building institution of the central bank of kenya and the region is well placed to develop and implement a curriculum that fits 21st century real estate financing. this curriculum is expected to be broad and multi - disciplinary cutting across various fields in demand for capacity building. such a multi - faceted capacity building program will provide the requisite skill sets to unlock potentials of the real estate sector in kenya. distinguished guests, ladies and gentlemen, with these remarks on the future of this market, it is my pleasure to declare this interactive forum officially open. i wish you all fruitful deliberations. thank you.

traditional mismatch constraint therefore comes into play. this requires a well developed mortgage market to address longterm funding requirements of the sector. developing mechanisms for long - term finance is good for monetary policy transmission as well. the mpc has been trying to address the issue of long - term finance ; we do hope this forum can provide some viable and feasible options. ladies and gentlemen : the government ’ s commitment to growth of real estate sector is in our blueprint for vision 2030 and is also well articulated in the finance bill, 2010. the finance bill outlines a number of measures to spur growth in the property market. in particular, in order to facilitate provision of adequate housing to kenya ’ s growing population, the finance bill, 2010 contains proposals to amend the banking act : ( i ) to allow mortgage finance companies to operate current accounts ; and ( ii ) to allow banks to advance up to 40 % of their total deposit liabilities up from 25 % for purchase, improvement or alterations of land. these measures will unlock the sector ’ s potentials by availing funding required to finance growth of real estate in kenya. the central bank will continue to work with the sector to improve the operating environment. it is equally important for the players in the real estate sector to design innovative ways of securing funds to exploit opportunities available. for instance, pension funds are needed for guaranteeing members ’ mortgages. this is happening in kenya, but still at a low scale. leveraging on such long - term instruments will lower costs and make decent and low cost housing available to potential borrowers. also, other investment vehicles such as unit trusts have the potential of pooling funds required for specific projects. in addition, the success of the kenya government infrastructure bond as well as other corporate bonds that have followed, demonstrates enormous potential of the bond market. in 2009 alone the government raised a total of ksh 54. 7 billion through bonds issues, and the infrastructure bonds were oversubscribed every time. this is a clear testimony of the market ’ s ability to provide cheaper source of funding for long - term projects such as mortgages. to further deepen the bond market, the central bank has implemented a number of measures, including introduction of benchmark bonds and re - opening of these benchmark bonds to create liquidity and facilitate trading. we can then use this infrastructure bond platform to develop housing bonds. ladies and gentlemen : in all this, a vibrant financial sector with adequate and dynamic human capital is a vital