CENTRAL BANK OF KENYA
Remarks by
PROF. NJUGUNA NDUNG’U
GOVERNOR
CENTRAL BANK OF KENYA
AT THE
LAUNCH OF THE FIRSTRAND BANK REPRESENTATIVE OFFICE IN
KENYA
Serena Hotel
Wednesday, 2nd May 2012

Honourable Njeru Githae, Minister for Finance of the Republic of
Kenya
Mr. Sizwe Nxasana, the Chief Executive Officer, FirstRand Bank
Limited;
Mr. Lloyd Muposhi, the Chief Representative Officer, FirstRand
Bank Limited Representative Office in Kenya;
Distinguished Guests;
Ladies and Gentlemen:
It is my great pleasure to join you this evening for the official launch of the
FirstRand Bank Representative Office in Kenya. At the onset, I wish to
acknowledge the presence of Hon. Njeru Githae, the Minister for Finance of
the Republic of Kenya. His presence gives this function the great
significance it deserves. Further, I wish to thank the Chief Executive Officer,
Mr. Sizwe Nxasana, for inviting me to this auspicious occasion. We are glad
that the FirstRand Bank Ltd has a physical presence in Kenya.
Ladies and Gentlemen: I am delighted to note that the Kenyan Banking
sector has continued to attract a lot of interest from international financial
players. To this end, the number of licensed representative offices of top
international banks has steadily grown from one (1) in 2008 to four (4) in
2011. Moreover a fifth institution was granted an approval in principle on
5th March 2012 to establish a representative office in Kenya. I therefore
applaud this interest as it anchors well with Kenya’s Vision 2030 that will
make Kenya the premier regional financial services hub. For this reason,
financial development and deepening will be strong outcomes.
Financial infrastructure in Kenya can be considered complete.
Banks; Microfinance Institutions; currency centres; credit reference
bureaus; agency banking; risk-based supervision are indicators that the
financial infrastructure in Kenya is now in place:- with banks rolling out
branch networks across the region supported by initiatives like agency
banking and an appropriate information sharing mechanism allows the
financial sector to grow. Then the other arms of Pension, Securities and
Insurance are moving in the same direction.
Ladies and Gentlemen: It is worth noting that the Kenyan banking
sector has remained resilient despite the dynamic macro environment it

operates in. This is evidenced by the impressive profit before tax of Ksh.89.3
billion (USD1.08 billion) for the year ended December 2011. This was a
20.4% increase from Ksh.74.3 billion (USD895 million) returned in the
same period in 2010. The number of banks is growing to create strong
banks: mergers will be required, but that is a market outcome.
Ladies and Gentlemen: I would like to assure the banking sector and
other market players that the Central Bank will continue to support the
market development by providing an enabling environment for growth in
the banking sector. Allow me to outline the thrust of the initiatives we shall
continue to inculcate to ensure the sector operates efficiently, effectively
and soundly. The initiatives will be anchored on three pillars:-
First, strengthening Financial Stability, Supervisory and Regulatory
Framework. In particular, CBK will adopt a consolidated supervision
approach to take cognisance of the growing pan-African nature of the
Kenyan banking sector.
Second, enhancing Financial Integrity in the Banking Sector so as to
ensure that the financial systems are safeguarded against money
laundering and financing of terrorism.
Third, promoting Financial Inclusion for financial deepening and
development in line with the aspirations under the Kenyan Vision
2030.
Distinguished Guests, Ladies and Gentlemen; Finally, allow me once
again to applaud FirstRand Bank Limited for establishing a physical
presence in Kenya through a representative office. As the Central Bank we
are ready to support you as you develop your business not only in the
Kenyan market but also on the Eastern African side.
With these remarks, it is now my pleasure to welcome Honourable Njeru
Githae, Minister for Finance of the Republic of Kenya to make his remarks
and officially launch the Representative Office of FirstRand Bank here in
Kenya.
Thank you