to financial inclusion that are within their purview. i note with appreciation the continued role of afraca in promoting capacity building and knowledge exchanges among its members as one of the avenues of promoting financial inclusion in the rural and agricultural sectors in africa. ladies and gentlemen : the efforts to increase the level of financial inclusion in africa have started to bear fruit. this is largely attributed to advancements in mobile phone technology. rollout of mobile phone financial services ( mfs ) has proved a very useful tool in enhancing financial inclusion. africa has over the last few years, experienced one of the highest mobile phone penetration rates. mobile phone technology provides an effective and convenient communication channel. as a result, leveraging on mobile phone technology as a channel for financial services not only overcomes the distance barrier but also presents convenience as well as cost effective platforms for financial services. africa has continued to witness increased competition and diversity in the mfs space. more mobile phone operators are launching mobile money products whereas financial institutions are increasingly partnering and integrating with the telecommunication companies ’ platforms bis central bankers ’ speeches to offer financial services. the number of mfs products as well as the increasing rate of adoption has significantly lowered unit costs of financial services. a good example for the poor is operating bank accounts via mobile phones like the m - shwari product. ladies and gentlemen : agency banking is the other initiative adopted to overcome some of the barriers to financial inclusion. agency banking involves use of third party agents by financial service players to provide financial services. agency banking was introduced to take financial services to the populace in areas deemed uneconomical for brick and mortar branches to be established. agency banking complements mobile phone financial services since most of the agents use mobile phones in executing transactions for their clients. ladies and gentlemen : allow me now to share with you the outcomes of kenya ’ s adoption of mobile phone financial services platform and completed by agency banking. according to the finaccess survey, 2013, 11. 5 million adult kenyans use mobile financial services as compared to only 5. 4 million who use banks. this confirms the unprecedented opportunity to enhance formal financial inclusion through mobile financial services as compared to other channels. following rollout of mfs in kenya in 2007, the level of the population which is financially excluded has declined from 38 % in 2006 to 33 % in 2009 and now 25 % in 2013. similarly, the size of the population using informal financial services had dropped from 35 % in 2006 to 27 % in 2009 and now stands

held, we know that forex bureaus in line with the market dynamism, would like to expand their sphere of operations by offering more services and more products. in this regard and like any other good investment, the desire calls for enhancement of capital to be employed. in addition, the guidelines must be reviewed to align them with the provisions of the existing laws, like the proceeds of crime and antimoney laundering act 2009, which came into operation on june 28, 2010. this law together with the guidelines define the reporting methods of transactions by institutions. 5. ladies and gentlemen, despite the numerous challenges experienced in the forex bureau sub - sector in the recent past, the central bank recognizes the important role the bis central bankers ’ speeches sector plays in the economy by offering foreign exchange at competitive rates and providing employment to many kenyans. but the market can only expand and thrive if rules and guidelines are followed. in this case, only those investors who are ready and willing to conduct their business within the set rules will be allowed to remain in the market. as we align ourselves with the dynamics of the market, adherence to the rules of the game become more important and critical for the survival of the market. 6. to enhance market discipline and encourage constructive engagement with the regulator and so develop the market, i urge the owners of forex bureaus to strengthen the kenya forex bureaus association ( kfba ). this will entail reviewing the constitution of the association, putting in place a code of conduct and allocating more resources to the secretariat. the main objective of the initiative is to develop a vibrant market, to promote and uphold professionalism, enhance high ethical standards, foster self - regulation and above all keep the line of engagement with the regulator alive so that market vulnerabilities or any challenges can be addressed. for these reasons, membership to the kfba has been made mandatory and a pre - requisite for license renewal. 7. ladies and gentlemen, the workshop has been organized with one major objective of facilitating a consultative process. i therefore urge you all to actively participate fully and build consensus on the content of the guidelines before they are finalized. the central bank believes that this approach will foster an inclusive enabling environment for the growth and development of the forex bureau sub - sector. 8. finally, let me once again reiterate that the central bank of kenya as a financial regulator of this market and as an agent of developing this market will continue to pursue policies