ensuring investment opportunities with rewarding returns that are also predictable, while at the same time protecting the savings from inflation erosion. retirement benefits schemes thus thrive well in stable financial systems and where these benefits can be invested for gain and also develop the financial market. retirement benefits schemes benefit from central bank in both scores : stable, predictable low inflation ; stable, well - functioning financial sector. the law mandates the central bank to play two overriding roles. i would therefore like to say a word or two on how the central bank in pursuit of the two overriding goals would be beneficial to the retirement benefits schemes. let me start with inflation. the central bank is committed to pursue effective monetary policy that is consistent with the development agenda of the country and the development of an appropriate financial sector in which you play a role. in particular, the commitment is to a prudent monetary policy that keeps a tight lid on inflation. this should help retirement benefits maintain the value of benefits. this is a commitment which the central bank will sustain and thus make a meaningful contribution to the economy and to retirement benefits schemes. this environment allows you decide where to invest your funds and assures you that whatever payoffs you make to beneficiaries, they are not eroded by inflation and are mediated efficiently by the financial sector. to ensure financial sector stability, the central bank provides prudential guidelines and other regulations to guide the operations of the banks and micro finance institutions to provide proper functioning and orderly exit. the bank is also charged with the responsibility to promote an efficient and effective payment, clearing and settlement system. this facilitates the proper working of the financial sector and stable payments systems. note : effective monetary policy requires an efficient financial sector. this has been identified as a sector to lead the way in the vision 2030. i also anticipate that the financial sector will require to develop innovative products to tap into these savings provided by your schemes. i have observed the development of fund managers in the market in the last 5 years has been tremendous – a positive development. i am therefore looking forward to a good working relationship with the industry as we strive to achieve the nation ’ s overall development goals. thank you.

##meate ] … every corner of our minds. ” 3 four planks underpin our vision. first, the banking sector must become customer - centric. banks must truly adopt customer - centric business models to compete successfully in the future. products, channels and indeed pricing must be informed by customers ’ needs, preferences and affordability. technology provides banks with the opportunity to intimately understand their customers, enabling them to map their customers ’ journeys end - to - end. this will facilitate the identification of friction points for customers, allowing prompt action by banks to remove them and enhance the customers ’ experience. it is worth noting that even as banks embrace technology, their customers have the same expectations as other customers around the world and subject banks to the same standard they hold technology giants such as apple, amazon and alibaba. customers want fast and simple user experiences that serve their need. with data analytics capabilities, banks can use customers ’ digital footprints and identities to design suitable well - tailored products. customer feedback obtained through tailored research could also be used to inform the john maynard keynes the general theory of employment, interest, and money, 1935 improvements that will enhance customer experience. customer - centric models also require banks to identify cost savings that can be passed on to customers in the form of lower interest rates, commissions and fees. finally, customer relationship management must be at the heart of banks ’ business models. it should also be acknowledged that the outlook of shareholders of banks is crucial for the move towards a customer - centric business model. part of the implicit cost in the current business models relate to shareholders ’ expectations of the return on assets ( roa ) / return on equity ( roe ). high roa and roe expectations when priced into a banks model inevitably raise the costs of product delivery. there has been concerns about the kenyan banking sector ’ s high average roa of above 3 percent and roe of close to 30 percent, when compared to similar economies. shareholders must therefore temper their roa and roe expectations if banks are to deliver affordable products. in any case, the high roas and roes are not sustainable in the long term as customers cannot afford the high cost of banking services indefinitely. second, risk - based credit pricing is imperative. in cbk ’ s vision, customer credit histories must amount to something. good credit histories portend a less risky customer and therefore lower interest rates. customers cannot be treated with a broad brush, focusing on the few defaulters while not rewarding the majority