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50YearsofCentral BankinginKenya
RegionalandGlobalPerspectives
Editedby PATRICKNJOROGE
AND VICTORMURINDE
GreatClarendonStreet,Oxford,OX26DP, UnitedKingdom
OxfordUniversityPressisadepartmentoftheUniversityofOxford. ItfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship, andeducationbypublishingworldwide.Oxfordisaregisteredtrademarkof OxfordUniversityPressintheUKandincertainothercountries
©TheCentralBankofKenya2021
Themoralrightsoftheauthorshavebeenasserted FirstEditionpublishedin2021
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PublishedintheUnitedStatesofAmericabyOxfordUniversityPress 198MadisonAvenue,NewYork,NY10016,UnitedStatesofAmerica
BritishLibraryCataloguinginPublicationData Dataavailable
LibraryofCongressControlNumber:2020945721
ISBN978–0–19–885182–0
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Acknowledgements
Theoriginofthisbookgoesbacktothesymposiumtocelebratethe50-yearanniversaryoftheCentralBankofKenyaon13September2016inNairobi.Inaddition,the bookfeaturespaperswhichwerecommissionedfromthestaffofCentralBankof Kenya,specificallytoprovideexceptionalinsightintotheevolutionofspecificfunctionsoftheCentralBankandthe financialsectoroverthelast fiveorsodecadesin areassuchasmonetarypolicy,bankregulation,paymentsystems, financialinnovation,andtheinterbankmarket.Allthepapershavesincebeenupdatedinthelightof commentsreceivedattheConferenceandsubsequentreviewofthedraftversions.
TheCentralBankofKenyahopesthatthisbookwillprovideexceptionalinsight intotheevolutionofthe financialsysteminKenya,inthecontextofregionaland internationaldevelopmentsinthelast fiveorsodecades.Mostofthechapterscontain originalworkwhichisnotavailableelsewhere,whichshouldbeofspecialappealto universityresearchersandstudentsaswellaspolicy-makers,practitioners,andcivil societywhoareinterestedinthepast,present,andfutureoftheKenyan financial sector.Itisalsohopedthatthebookwillhelpgeneratemomentumforthetransformationofthe financialsysteminKenyainviewoftheongoingdigitalrevolutionaswell asglobalchallengessuchastheCOVID-19globalpandemic.
Manypeoplemadethisbookpossible.Weareespeciallygratefultoallthe authorsofthechaptersfeaturedinthisbookforsharingtheirpapersatthe Conferenceandcontributingtheadditionalchapters.Manycolleagueshelpedby reviewingandprovidinghelpfulsuggestionsforimprovementofthedraftchapters;wewouldliketothankLaurenceHarris,AndyMullineux,DésiréKanga,Ayse Demir,MengXie,MaryamShloever,AnosiIkimalo,andIboMurinde.Wealso acknowledgehelpfulcommentsandrecommendationsmadebythreeanonymous reviewersfromOxfordUniversityPressduringtheinitialstagesofthebook proposal.WeareindebtedtoAdamSwallow,thecommissioningeditor,andhis editorialteamattheOxfordUniversityPress,includingJohnSmallman,Katie Bishop,andSamanthaDownes;theysupportedourprojectfrombeginningtoend withpatienceandprofessionalism.WealsothankBhavaniGovindasamyforher meticulousworkduringtheproductionprocessofthebook.
Nobookprojectofthismagnitudecanbeaccomplishedwithoutresearchand logisticalsupport;wewouldliketosincerelythankthestaffintheResearch DepartmentoftheCentralBankofKenya,inparticularMaureenWere,Anne Kamau,RaphaelOtieno,EsmanNyamongo,andJuliusBett,whoprovidedexcellentsupportandinput.AdditionalsupportfromotherdepartmentsoftheCentral Bank,inparticularbyBettyGatere,ismuchappreciated.
PatrickNjorogeandVictorMurinde
ListofFigures ix
ListofTables xiii
NotesonContributors xv
1.Introduction1 PatrickNjorogeandVictorMurinde
PARTICENTRALBANKING:GLOBAL ANDREGIONALPERSPECTIVES
2.MonetaryPolicyandtheFutureofCentralBanking: ImplicationsforAfrica9 MitsuhiroFurusawa
3.ReflectionsonCentralBanking15 PatrickNjorogeandVictorMurinde
4.CentralBankIndependence:WhatAretheKeyIssues?39 PatrickNjoroge, DésiréKanga, andVictorMurinde
5.EvolutionofCentralBanking:SomeObservations68 FedericaBranca, IxartMiquel-Flores, andFrancescoPaoloMongelli
6.FinancialStabilityandBankSupervisioninthe Twenty-FirstCentury86 BabakAbbaszadeh
7.FinancialInnovationandFinancialInclusion:Insights fromaPractitioner92 BobCollymore
8.DoCentralBanksHaveaRoleinFinancialInclusion?119 DavidFerrandandIgnacioMas
9.CentralBankingandFinancialInclusion:SomeKeyIssues138 JohnRwangombwa
10.MobileMoney146 TavneetSuri
11.EastAfricanMonetaryUnion:WhatLiesAhead?175 LouisA.Kasekende
PARTIITHECENTRALBANKOFKENYA
12.TheEarlyDaysoftheCentralBankofKenya197 MaheshGheewala
13.CentralBankinginKenya:Evolution,Challenges, andFutureProspects250 MaureenWere, CharlesKoori, andJuliusBett
14.DynamicsofMonetaryPolicyinKenya281 EsmanNyamongo, IsayaMaana, andAnneKamau
15.EvolutionoftheFinancialSectorinKenya304 CappitusChironga, MatuMugo, andDanielTallam
16.PoweringFinancialInclusionthroughInnovative PaymentSystems349 MatuMugo, EvelyneKilonzo, andAnneW.Mariga
17.DevelopmentoftheGovernmentSecuritiesMarketinKenya381 LeonardThotho, CarolineWanjiku, andDanielAmanja
18.TheStructureoftheInterbankMarketinKenya:Prospects andChallenges424 LydiaNdirangu, KethiNgoka-Kisinguh, andEstherKariuki
ListofFigures
4.1EvolutionoftheLVAUindexforselectedAfricancountries49
5.1GDPpercapita(currentUS$)69
5.2Officialexchangerate(LCUperUS$,periodaverage)70
5.3Varianceinofficialexchangerate(LCUperUS$,periodaverage)71
5.4Officialexchangerate(LCUperUS$,periodaverage)changeYoY71
5.5ConsumerPriceIndexinflationrate73
5.6Realinterestrate(%)cross-countrystandarddeviation73
5.7CentralGovernmentcashsurplus/deficit(%ofGDP)75
5.8Nationalaccounts expenditures75
5.9Currentaccountbalance(%ofGDP)76
5.10TheWorldEconomicForumGlobalCompetitivenessIndex77
5.11TheWorldEconomicForumGlobalCompetitiveness12Pillar Indicators77
5.12Domesticcredittoprivatesectorbybanks(%ofGDP)78
5.13Domesticcredittoprivatesectorbybanks(%ofGDP)78
5.14ThethreestagestoEconomicandMonetaryUnion80
5.15Whodoeswhat?Adecentralizedstructureforadiversesetoftasks81
5.16PolicydecisionsbytheGoverningCouncil83
8.1Policycommitmentsin financialinclusion,bythematicarea andcountry120
8.2SubprimemortgagemarketboomandbustintheUS125
8.3Evolutionintheproportionofpeopleindebt,byincomegroup125
8.4ContributionstothehousingmarketbustintheUS126
8.5HomeownershipratesintheUS,beforeandafterthesubprimecrisis128
8.6Howinclusionmayleadto financialstability129
8.7AtimelineofCBKactionspromoting financialinclusion134
10.1Mobilephone(a)subscriptionsand(b)subscriptionsrate,2014148
10.2Mobilephonesubscriptions,1990–2014149
10.3TransactionfeesforKenya,Uganda,Tanzania,thePhilippines, Pakistan,andBangladesh151
10.4ResilienceofM-PESAusersandnon-userstoeconomicshocks. Panel a isbasedondatafromJackandSuri,2014;panel b is basedondatafromSurietal.(2012)161
11.1ExchangerateindicesagainsttheUSdollar(January2007=100) fortheBurundifranc,Kenyashilling,Rwandafranc,Tanzania shilling,andUgandashilling;January2007–January2017187
13.1Trendsinannualinflationandexchangeratein1990s261
13.2Trendsinoverallandfoodinflation267
13.3Trendsinexchangerate(KSh/USD)268
A13.1OverviewofCBKevolutionvis-à-visdomesticeconomy andglobalenvironment276
A13.2Selectedcentralbanks’ assetstoGDP(%)277
A13.3OrganizationalstructureoftheCBK277
14.1Shareofcreditofthebankingsectortogovernment(%)287
14.2Evolutionofexports,exchangeratemisalignmentandgrowth,1966–85288
14.3FiscalandmonetarypolicymixinKenya,1978–89289
14.4Evolutionofcurrencyoutsidebanks293
14.5Evolutionofvelocityofmoneyandmoneymultiplier294
14.6Evolutionofnumberofloanaccountsandaverageloansize299
14.7Evolutionofcredittotheprivatesector301
15.1Overlapsintheuseof financialservicesbyconsumers(%)305
15.2Proportionof financialsectorassetsandmarketcapitalizationto nominalGDP307
15.3Growthinindustrypremiumsandassets323
15.4Insurancepenetrationanddensity324
15.5RetirementbenefitsassetsinKShbillions337
A15.1Kenya’ s financialsystemlandscape347
16.1Modeoflocalmoneytransfers357
16.2Mobilemoneygrowth359
16.3Regionalcomparisonofuseofmobilemoneyand financial inclusionstrands360
16.4VolumesandvaluesoftransactionsinKEPSS362
16.5Automaticclearinghousethroughput364
16.6CurrentclearingperiodT+1365
16.7PaymentscardperformanceinKenya367
16.8REPSStransactions(inUSD)2014–18369
16.9Growthofagentbankingbusiness371
16.10CRBreportingtrajectory372
16.11Increasedaccessto financialservices373 16.12Increasedaccesspoints375
17.1CompositionofTreasurybillsandbonds,1987–2012393
17.2Stockofdomesticgovernmentsecuritiesbyinstrument,2000–16393
17.3Holdersofgovernmentsecurities,2008–16394
17.4Averagematurityofgovernmentsecurities,2001–09396
17.5Averagetimetomaturityofgovernmentsecurities,June2008to January2017396 17.6Treasurybillsbytenor398 17.7Treasurybillsbytenor398
17.8WeightedaverageinterestratesforTreasurybills,1969–96399 17.9Treasurybillsinterestrates400 17.10HoldersofTreasurybills401
17.11HoldersofTreasurybonds,1998–2016404
17.12AuctionsofTreasurybonds405
17.13AnnualtradingturnoverofTreasurybonds407
17.14MonthlyTreasurybondstradingturnover408
17.15AnnualTreasurybondsturnover408
17.16Monthlybondsturnoverintheperiod,2001–16409
17.17Numberofbondseriespertenor411
17.18Numberofbondsreopenedpertenor411
17.19Reopenedbondsbytenor412
17.20Benchmarkportfoliomaturityprofile(KShbillion)412
17.21Benchmarkportfoliobyremainingtimetomaturity(RTM)412
17.22Proportionofbondsbyremainingtimetomaturity413
17.23Stockofbondsalongtheyieldcurve413
17.24Couponratesonbenchmarkissues413
17.25EvolutionofKenyaGovernmentbondyieldcurve415
17.26EvolutionofKenyaGovernmentbondyieldcurve416
17.27BenchmarkbondsyieldsandTreasurybillsrates416
A17.1CompositionofTreasurybills,bonds,andgovernmentstocks, 1964–2016421
A17.2KenyaGovernmentbondyield,couponrate,andtenor421
18.1Monthlyvalueandvolatilityoftheovernightinterbanktransactions, 2000–June2017427
18.2Numberofovernightdealspermonth427
18.3Averagenumberofbanksparticipatingintheinterbankmarket, 2008–June2017428
18.4Trendsoftheinterbankrateandexcessreserves430
18.5Volatilityandspreadofinterbankinterestrate,2000–June2017430
18.6VolatilityofthenetpositionoftheGovernment431
18.7Liquidityconditionsandthetermstructure,2015–16431
18.8Distributionofinterbankassetsandliabilities,2008q4–2017Q2432
18.9Evolutionofconcentrationofassetsandliabilities432
18.10Evolutionofthedegreemeasuresbytiergroup438
18.11Ratioofout-toin-degree438
18.12Correlationbetweenin-andout-degree439
18.13Comparisonbetweenthedegreesandstrength439
18.14Distributionofthedegreesbydirectionof flow440
18.15Distributionofvalue,2013–2017q2441
18.16Densityoftheinterbanknetwork444
18.17Affinityintheinterbankmarket445
18.18Networkdiameterandaverageshortestpathlength446
18.19Clusteringcoefficientandthedegree447
18.20PageRankandbetweennesscentrality449
A18.1Theinterbankexposurefor2013–16451
A18.2Theinterbankexposurefor2013–16453
A18.3Trendsinlevelandvolatilityofgovernmentdeposits,2013–2017q1454
A18.4Trendofclusteringcoefficient,closenessandbetweennesscentrality454
A18.5PageRankandin-degreecentrality455
A18.6PageRankandout-degreecentrality455
A18.7PageRankandliabilities456
A18.8Relationshipofbetweennesscentralityandliabilities456
ListofTables
4.1Variousconfigurationsofcentralbankindependence41
4.2Variousmeasuresofcentralbankindependence46
4.3Evolutionofcentralbankindependenceindicesaroundtheworld48
4.4MeasuresoftheconservativenessoftheFederalReserve49
4.5MeasureofcentralbankconservativenessforAfricancountries estimatedbyusingEquation(4.2)51
4.6Effectofcentralbankindependenceoninflation54
4.7Governingboardandmanagement55
4.8WhochairstheBoardofDirectorsoftheCentralBank?56
10.1Numberofagentsinselectedmarkets156
10.2Averagedistancetotheclosest financialinstitutions,Kenya156
11.1ExportsandimportsofEACpartnerstatesto/fromtheworldand to/fromtheEACin2014and2015(millionsofdollars)177
11.2Doingbusinessindicators,overallandtradingacrossborders, rankings,anddistancetofrontier,2017178
11.3Quantitative fiscalcriteriaintheEAMUProtocol181 A13.1Historicaltrendsinselectedmacroeconomicindicators278
14.1Selectedmacroeconomicvariables,1966–70285
14.2Evolutionofinflationandinterestratesinthe1970sand1980s286
14.3Evolutionofexchangeratesandexportsin1970–89287
14.4Evolutionofkeyeconomicindicators,1990–99291
14.5Interestratespreadsacrosscountriesandregions297
14.6Evolutionofbankliquiditybybanktier301
14.7Evolutionofstructureofincomeofcommercialbanks301
15.1NumberofCBK’ssupervisedinstitutions,2003–17313
15.2Commercialbanks’ expansionindicators,2003–17315
15.3PlayersinKenya’sinsurancemarket322
15.4InsuranceindustryplayersinEastAfrica,2016324
15.5GrowthofkeySACCOindicators,1995–2002330
15.6Growth figuresofkeySACCOparameters,2003–09332
15.7Growth figuresofkeySACCOparameters,2010–15332
15.8Overallindustryinvestmentportfolio(KShbillions)338
15.9Keyequitiesmarketindicators343
15.10Keybondmarketindicators,2008–17344
A15.1CapitalmarketsindustryplayersinKenya346
16.1SummaryofKenya’sdigital financelandscapeoverthelastdecade359
16.2Pesalinkinnumbers365
16.3REPSStransactions(inUSD),2014–18368
17.1Kenya’snationaldebt,1970–2016382
17.2AuctionsofTreasurybondsintheperiod,2001–16(KShbillion)406
17.3DescriptivestatisticsonTreasurybondsturnover(KShbillion)409
17.4Performanceofinfrastructurebondauctions(KShM)419
A17.1OutstandingTreasurybondsbytypeofbond(KShmillion)422
A18.1Policyactionstoreformtheopenmarketoperations,2006–15457
NotesonContributors
Editors
PatrickNjoroge istheGovernoroftheCentralBankofKenya.HeholdsaPhDin EconomicsfromYaleUniversity,and firstandseconddegreesinEconomicsfromthe UniversityofNairobi.HeworkedintheMinistryofPlanninginKenyaasaPlanning Officerfrom1985to1987.Uponcompletinghisdoctorate,heworkedasanEconomistat theMinistryofFinancefrom1993to1994.FromApril1995tomid-June2015hewasat theIMFinWashington,DC,whereheservedinvariouscapacities: firstasanEconomist andlaterasaSeniorEconomist;IMFMissionChiefforDominica;DeputyDivision Chief,FinanceDepartment;andAdvisortotheDeputyManagingDirectorofthe IMF.HehaswonseveralawardsasaCentralBankGovernor.Hewasnamedthe2018 CentralBankeroftheYearinAfricabyaninternationalUK-basedpublication, The Banker Magazineinrecognitionofhisprudenceandlong-termvisionforKenya’ s economyandthebankingsector.InOctober2018,hereceivedtheGlobalMarkets CentralBankerGovernoroftheYearawardforsub-SaharanAfrica,andinMay2016 hewasrecognizedastheCentralBankGovernoroftheyearattheAfricanBankerAward ceremonyheldinLusaka,Zambia.
VictorMurinde isAXAProfessorofGlobalFinanceandfoundingDirectoroftheResearch CentreforGlobalFinanceatSOASUniversityofLondon.Hehascontributedover100 researchpaperstothe financialeconomicsliterature,mainlyintheareasofbankingand finance,development finance,and financialmarkets.AccordingtotheUKResearch ExcellenceFramework(REF2014),hisresearchon ‘ShapingBankRegulatoryReformsin Africa’ wasrecognizedforexceptionalimpact.HeisthePrincipalInvestigatorofaDFIDESRCResearchGranton ‘InclusiveFinance’,2016–21,leadingaconsortiumof:SOAS UniversityofLondon;UniversityofBirmingham;ColumbiaUniversity;Universityof Sussex;UniversityofNottingham;ODILondon;UniversityofGroningen;Laval University;UniversityofGhana,Legon;andtheAfricanEconomicResearchConsortium (AERC).Heisco-investigatoronESRC–NSFCGranton ‘ResearchonChina’sFinancial SystemtowardsSustainableGrowth’,jointlywithcolleaguesatSOASUniversityofLondon andNankaiUniversityTianjen,andZhejiangUniversity,Hangzou,inChina.Hisother currentrolesinclude:Chair,EconometricSocietyAfricaRegionStandingCommittee; ChairofGroupC(Finance&ResourceMobilization)fortheAfricanEconomicResearch Consortium(AERC);BoardMemberofNewRulesforGlobalFinance,apolicyforum basedinWashington,DC;andVisitingProfessorofFinancialEconomicsattheSchoolof Economics,UniversityofNairobi.HewasthefoundingDirectoroftheAfrican DevelopmentInstitute,attheAfricanDevelopmentBank(2011–14).
Contributors
BabakAbbaszadeh isthePresidentandCEO,TorontoCentre.BabakAbbaszadehjoined TorontoCentreasthePresidentandChiefExecutiveOfficerinJune2010.Heisresponsible forallaspectsoftheorganization’sstrategicdevelopment,capacitydevelopment,and operationalactivities.OnbehalfoftheCentre,MrAbbaszadehbuildspartnershipswith theleadershipofcentralbanks,supervisoryauthorities,aswellasinternationalstandard settingbodiesandministriesof financeandforeignaffairsglobally.Withalmost30yearsof experienceinmanagement,publicpolicy,andstakeholderrelationsintheprivatesector, governmentagencies,andNGOs,Babakhasheldleadershiprolesinhighlyregulated sectorssuchas financialservices,energy,andnaturalresources.PriortojoiningToronto Centre,BabakheldseniorpositionsininternationallyorientedCanadian financialinstitutionssuchastheCanadaPensionPlanInvestmentBoardandSunLifeFinancial.Babakwas alsoChiefofStafftotwoseniorcabinetministersintheGovernmentofOntario.
DanielAmanja istheheadofExternalSectorAnalysisDivisioninResearchDepartment, CentralBankofKenya.HejoinedtheBankin2006andhasheadedvariousDivisions withintheDepartment.HeisamemberoftheBank’sForeignReservesInvestment CommitteeandhasalsobeeninvolvedintheEACregionalintegrationinitiatives.He teachesaspart-timelecturerforpostgraduatecollaborativeprogrammesattheKenya SchoolofMonetaryStudies(KSMS).BeforejoiningCBKheworkedatMinistryof Financeinvariouscapacitiesandwasinvolvedinmanyreforms,includingintroduction ofmedium-termbudgetframework,procurementreforms,andtrainingofpublicofficers on financialmanagement,especiallymanagementofforeignaidinSub-SaharanAfrica.
JuliusBett worksintheMacroeconomicModellingForecastingandResearchDivision, ResearchDepartmentattheCentralBankofKenya.Hisresponsibilitiesincludeinflation analysis;near-termandmedium-terminflationprojections.HehasaMaster’sdegreein BankingandFinancefromMoiUniversity.
FedericaBranca workswiththeImpactInternationalGraduateProgramatUniCreditin Milan,Lombardy,Italy.Previously,FedericaworkedasaRiskAnalystattheEuropean CentralBank,FrankfurtAmMain,Germany,September2017–June2018;Financial AnalystatLISTSpAinMilan,Italy,duringJuly2017–August2017;andatraineeinthe CapitalMarkets-MonetaryPolicyDepartmentattheEuropeanCentralBank,Frankfurt AmMain,Germany,duringJuly2016–June2017.FedericaholdsaMaster’sdegreein EconomicsfromtheUniversityofPavia,anotherMaster’sdegreeinEconomicsfrom Eberhard-Karls-UniversitätTübingenandaBachelor’sdegreeinEconomicsfromthe UniversityofInsubria.
CappitusChironga worksintheResearchDepartmentofCentralBankofKenyaasa Manager.HejoinedtheBankin2001.HeworkedinFinancialMarketsforeightyearsbefore joiningResearchDepartmentwherehecurrentlyleadsateamon financialstabilityand financialinclusionwork.AnalumnusofWarwickBusinessSchool,UniversityofWarwick, UK(2005),wherehestudiedMastersofScienceinEconomicsandFinanceandthe UniversityofNairobiSchoolofEconomicsforhis firstMastersofArtsdegreein Economics(2003)andBachelorofArtsinEconomics.TheauthorisanAccredited
FellowofMacroeconomicandFinancialManagementInstituteofEasternandSouthern Africa(MEFMI),CheaveningScholar,FellowofInternationalVisitorsLeadershipProgram oftheUSStateDepartmentandGermanyAcademicExchangeServices(KAAD)Scholar. HeisalsoaUNCTADMemberofConsultantsTeam.Hehaswideexperienceon financial sectorissuesinKenyaandacrossEastAfricanregion.
BobCollymore sadlypassedawaywhenthisbookwasinpress.HewastheCEOof SafaricomLimited,aleadingcommunicationscompanyinAfricaandpioneerofMPESA,theworld’smostdevelopedmobilepaymentsystem.Robert(Bob)Collymore’ s workexperiencespannedacrossdiversecountriessuchasJapan,SouthAfrica,andthe UnitedKingdomwhereheheldseniorrolesinmarketing,purchasing,retail,andcorporate affairs.Bobhadmorethan30yearsofcommercialexperienceworkinginthetelecommunicationssectorandwaspassionateabouthowbusinessescanbecatalystsintransforming communities.Underhisleadership,Safaricomcommittedtoutilizeitsinfrastructureto achieveuniversalaccesstoessentialcommunicationsandleveragepartnershipsthataimed totacklehealthandcleanenergyforapositiveimpactoneconomicgrowth.MrCollymore wasamemberoftheBoardofAcumenandservedasaCommissionerontheUnited NationsCommissiononLife-SavingCommoditiesforwomenandchildren.InKenya,he wasonTheVision2030DeliveryBoardandwasthefoundingtrusteeeoftheNationalRoad SafetyTrust.HewasalsotheChairmanoftheTEAMS(TheEastAfricanMarineSystem) Board.InrecognitionofoutstandingservicesrenderedtothenationofKenya,Bobwas awardedtheMoranoftheOrderoftheBurningSpearbythePresidentoftheRepublicof Kenya.
DavidFerrand istheDirectorofFinancialSectorDeepening(FSD)Kenya,amulti-donor initiativetosupportthedevelopmentofinclusive financialmarketsinKenya.Hehasledthe organizationsinceitsinceptionin2005.FSDaddressesopportunitiesandconstraintsto marketdevelopmentfromthepolicyandregulatorylevelthroughindustryinfrastructureto innovationby financialserviceproviders.CurrentfundersaretheUK’sDepartmentfor InternationalDevelopment(DFID),theBill&MelindaGatesFoundation,andtheSwedish InternationalDevelopmentAgency(SIDA).Davidhasbeenengagedinworkon financial inclusionandsmallandmediumenterprise(SME)developmentsince1993.As financial sectorspecialistforDFIDintheEasternAfricaregion,hewasinvolvedinawiderangeof activityfromprogrammedesignandmanagementtopolicyadviceandanalysis.Hehasalso consultedonarangeof financialinclusionprojectsaroundtheworld.Inhisearliercareer hetrainedandworkedasabankerintheUKandKenya.Experiencesincludedaformative periodinKenyaasalendingmanagerdealingprimarilywithaportfolioofsmalland mediumenterprises.
MitsuhiroFurusawa hasbeenDeputyManagingDirectoroftheInternationalMonetary Fund(IMF),since2March2015.HejoinedtheIMFafteradistinguishedcareerinthe Japanesegovernment,includingseveralseniorpositionsintheMinistryofFinance. ImmediatelybeforecomingtotheFund,heservedasSpecialAdvisortoJapanesePrime MinisterShinzoAbeandSpecialAdvisortotheMinisterofFinance.Amonghisrecent ministrypostings,heservedasViceMinisterofFinanceforInternationalAffairs (2013–14),Director-GeneraloftheFinancialBureau(2012–13),andSeniorDeputy
Director-GeneraloftheInternationalBureau(2009–10).Hisoverseaspostingsforthe JapanesegovernmenthaveincludedIMFExecutiveDirector(2010–12),Minister (Finance)attheEmbassyofJapanintheUnitedStates(2007–09),andCounselor (Finance)attheEmbassyofJapaninFrance(1997–99).Heisa1979graduateofthe UniversityofTokyowithanLLBdegree;healsograduatedin1983fromtheÉcole Nationaled’AdministrationinParis.
MaheshGheewala isnowretiredafteralonganddistinguishedcareerinthe financialsector inKenya.HejoinedGovernmentserviceasanEconomist/StatisticianintheStatistics DepartmentoftheKenyanTreasuryinJanuary1962.HeretiredasDeputySecretaryin ChargeoftheMonetaryandFiscalDivisionin1975.Throughouthistenure,hehandled manyeconomic,monetary, fiscal,andothermatters,andwasinstrumentalininitiatingand promotingmajorpolicies,programmes,andprojectstotheirsuccessfulimplementation. HewasTreasuryOfficerresponsibleforestablishmentoftheCentralBankofKenya.
AnneKamau isaneconomistattheResearchDepartmentoftheCentralBankofKenya with10years’ experienceincentralbanking specificallyinmonetarypolicy,economic modelling,andforecasting.Herpolicyandbankingcareerhasbeenenrichedbyher experienceinhighlevelpublicpolicyengagements,attheExecutiveofficeofthe PresidentoftheRepublicofKenyaandinternationallyattheBrookingsInstitutebasedin Washington,DC.Currentlyshefocusesonmonetaryandinflationresearch,essential inputstotheMonetaryPolicyCommittee atopdecision-makingorganatthebank. PriortojoiningtheBanksheworkedforacommercialbankbeforejoiningagovernment thinktank KenyaInstituteforPublicPolicyResearchandAnalysis,whereshewaspartof aselectteamthatwasengagedineconomicpolicymodelling,research,andproviding publicpolicyadvicetokeygovernmentofficials.Shehaspublishedseveraljournalarticles, discussionsandworkingpapers,policybriefs,andpolicyopinions.Shealsofeaturesin severaltopicalpodcasts.SheholdsaPhDinEconomicsfromtheUniversityofNairobi.
DésiréKanga isaSeniorEconomistattheCentralBankofWestAfricanStates(BCEAO), theissuinginstitutecommontotheeightmemberstatesoftheWestAfricanMonetary Union(WAMU).Beforethat,hewasapost-doctoralResearchFellowintheResearch CentreforGlobalFinance(CGF)atSOASUniversityofLondon.DésiréjoinedtheCGFat SOASin2018,undertheAXAChairinGlobalFinance.HeholdsaPhDinEconomicsfrom theUniversityofOrléans(France),andanMScinStatisticsandEconomicsfromENSEA (Côted’Ivoire).BeforejoiningSOAS,hewasinvolvedinvariousresearchprojectsand teachingatENSEA.Hisresearchfocusesonthebankingsectorandmonetarypolicy transmissionmechanisms.Hisongoingresearchseekstouncovernewevidenceonhow cross-borderbankingimpactsthedomesticcreditmarketintheWAEMUregion.Hiswork hasbeenpublishedinhighlyratedjournalsincludingthe JournalofBankingandFinance
EstherKariuki joinedtheCentralBankofKenyainSeptember2011.SheholdsaMaster’ s degreeinEconomicsfromtheUniversityofMalawiandaBachelor’sdegreein MathematicsandEconomicsfromtheUniversityofNairobi,Kenya.Shehasalsoattended awiderangeofprofessionalcoursesorganisedbyvariousinstitutions.Priortojoiningthe CentralBank,Ms.KariukiworkedfortheNationalTreasury(2005–August2011)where sherosethroughtherankstothepositionofaSeniorEconomist.WhileattheNational
Treasury,shewassecondedtotheWorldBankVoiceSecondmentProgramme(2009)in theEastAsiaandPacificRegion(Jakarta,Indonesia).PriortojoiningtheNational Treasury,sheworkedfortheKenyaInstituteforPublicPolicyandResearchAnalysis (KIPPRA),2002–04,wheresheservedundervariouscapacities.Herprofessionaland researchinterestsareinMacroeconomics,MonetaryPolicy,FiscalandDebtPolicy,and RegionalIntegrationissues.
LouisA.Kasekende isformerDeputyGovernor,BankofUganda.FromMay2006to2009, heservedasChiefEconomistoftheAfricanDevelopmentBank(AfDB).AsChief Economist,hewastheBank’sspokespersononsocio-economicanddevelopmentissues ofimportanceforAfrica,andiscreditedforplayingaleadingroleintheAfDB’seffortsto helpAfricaneconomieswithstandtheimpactoftheglobaleconomiccrisis.Between2002 and2004,heservedasAlternateExecutiveDirectorandlaterasExecutiveDirectoratthe WorldBankforAfricaGroup1,including22countriesmostlyfromAnglophoneSubSaharanAfrica.PriortojoiningtheWorldBank,hehadworkedfor17yearsattheBankof Ugandainseveralcapacities,includingasDirectorofResearchDepartment,Executive DirectorresponsibleforResearchandPolicyandservedasDeputyGovernorbetween1999 and2002.HehaspreviouslyservedasamemberoftheUnitedNationsGroupofEminent PersonsfortheLeastDevelopedCountriesandtheWorldBankKnowledgeAdvisory Commission.Currently,heisaBoardMemberoftheAfricanExportImportBank (AFREXIMBANK),theInternationalEconomicsAssociation(IEA),andtheAfrica EconomicResearchConsortium(AERC),andisamemberoftheNationalSteering CommitteeonCapitalMarketsDevelopmentinUganda.HeholdsaPhDin Econometrics,fromtheUniversityofManchester.Hehasauthoredseveralarticlesin academicjournalsandbooks.
EvelyneKilonzo hasworkedfortheCentralBankofKenya(CBK)forover19yearsand currentlyservesasaManagerandPortfolioLeadoftheFinancialInclusionSectionofBank SupervisionDepartment.Sheisalsotheleadofthe16-memberinterdepartmentalFinancial Innovation&InclusionTeam(FIIT)ofCBK.Shehasled,coordinated,facilitated,and participatedincriticalmilestoneactivitieswithvariouslocal,regional,andinternational partnerstowardsfulfillingCBK’smandateofformulatinginnovativepolicysolutionsto enhance financialinclusioninKenya.Sheisversedinkeypolicy,legal,andregulatoryissues relatingto financialinclusion,includingmicrofinance,digital finance,agencybanking, creditinformationsharing, financialeducation,consumerprotection,andrecently, FinancialTechnology(Fintech).MsKilonzoisanalumnusfellowoftheCornellInstitute ofAfricanDevelopment(IAD)andgraduateofCornellUniversity,USA,havingbeen awardedaMaster’sdegreeinInternationalDevelopment(focusingonDevelopment Policy).ShealsohasaBachelorofArtsdegreeinInternationalRelationsfromtheUnited StatesInternationalUniversity Africa(USIU-A),Kenya,andadiplomainMicrofinance fromStrathmoreUniversity,Kenya.
CharlesKoori istheformerDirector,ResearchDepartmentattheCentralBankofKenya. HeholdsanMAdegree(Economics)degreeandBAdegree(Economics)fromthe UniversityofNairobi.MrKoorijoinedtheCentralBankofKenyainAugust1984and servedinvariouscapacitiesintheResearchDepartmentuntilhissecondmentasan
Economist,fromtheCentralBankofKenya,totheOfficeoftheIMFSeniorResident Representative(Nairobi)inAugust2004.MrKooriwasappointedDirectorofResearchin October2008.TheResearchDepartmentisresponsibleforeconomicanalysisandresearch withtheviewtosupporttheformulationandimplementationofmonetarypolicyforprice stability,compiling,anddisseminatingeconomicdataandrelatedreports,providingadvice onsoundeconomicpolicies,andcoordinatingCentralBankofKenyaparticipationinthe nationaleconomicpolicydialogueandregionalandinternationalintegrationinitiatives.
IsayaMaana istheheadoftheMonetaryPolicyCommitteeSecretariatintheResearch DepartmentattheCentralBankofKenya.HeisresponsibleforcoordinationandfacilitationoftheactivitiesoftheMonetaryPolicyCommittee.Hehaswideexperienceinthe CentralBank’soperationsspanningtwentyyears,hasundertakentechnicalresearchand publishedonmonetaryand financialsectorissues,publicdebt,andonCentralBank communications.
AnneW.Mariga istheHeadoftheNationalPaymentsSystem(NPS)Divisionofthe BankingandNPSDepartment,apositionshehasheldforthelastyear.Anneholdsa Bachelor’sdegreeinFinancefromtheUniversityofNairobiandanMBAinStrategic ManagementfromtheMoiUniversity.Sheisalsoaqualifiedaccountant,CPA(K)anda CertifiedInformationSystemsAuditor(CISA).AnnehasbeenwiththeCentralBankof Kenyafor26years,aperiodduringwhichsheworkedindifferentdepartmentsoftheBank. ShestartedhercareerintheBankattheFinancedepartmentthenmovedontotheInternal AuditDepartmentwheresheservedfor15years.ShewaslatertransferredbacktoFinance whereshewasinchargeoftheBank’sPayrollbeforeshemovedtohercurrentposition.
IgnacioMas isanexecutivedirectorandco-founderattheDigitalFrontiersInstitute,anew organizationthatisdevelopingaprofessionaldevelopmentnetworkandtrainingcourse arounddigitalmoneyandpayments.HeisalsoaSeniorFellowattheFletcherSchool’ s CouncilonEmergingMarketEnterprisesatTuftsUniversity.IgnaciohasbeenDeputy DirectorintheFinancialServicesforthePoorprogrammeattheBill&MelindaGates Foundation,SeniorAdvisorattheTechnologyProgramatCGAP,andDirectorofGlobal BusinessStrategyatVodafoneGroup.
IxartMiquel-Flores isaBankingSupervisionRiskAnalystintheQuantitativeRisk AnalysisDepartmentattheEuropeanCentralBank,FrankfurtAmMainArea,Germany. Heworksaspartofateamwhichconductsandleadson-siteinspectiononmarketandIT risk,conductsregularanalysisof findingstoguideteamsandJSTsinordertoidentify systemicweaknesses,developsandmaintainingtheon-siteinspectionmethodologyand organizingrelatedtrainingactivitiesandworkshops,andparticipatesasnecessaryin internationalmethodologyandstandardsdevelopmentworkinggroupsandcommittees. IxartholdspostgraduatequalificationsinbankingriskmanagementfromUniversity CollegeDublin,aMSc.degreeinCorporateFinancefromtheFrankfurtSchoolof Finance&Management,andBachelorofBusinessAdministrationdegreeinBusiness/ ManagerialEconomicsfromtheUniversitatRoviraiVirgili.
FrancescoPaoloMongelli isSeniorAdviserintheDirectorateMonetaryPolicy,atthe EuropeanCentralBank(ECB)andhonoraryProfessorattheJohannWolfgangGoethe
UniversityofFrankfurt.HeholdsaBAinEconomicsfromtheFreeUniversityforSocial Studies(LUISS)inRome,andalsoaMaster’sdegreeandaPhDinEconomicsfromthe JohnsHopkinsUniversityinBaltimore.HehasworkedattheECBsince1998.Priortothat, hespentseveralyearsasaneconomistattheIMFinWashington.Hispapershavebeen publishedinvariousoutletsincluding TheJournalofMoneyCreditandBanking, The JournalofCommonMarketStudies, EconomieInternationale, Bancaria,and TheJournal ofEconomicIntegration.
MatuMugo isanAssistantDirectorinBankSupervision,CentralBankofKenya.Heleads teamsresponsibleforthereviewanddevelopmentofpoliciestopromotesafe,affordable, andinclusive financialservices.HehasheldvariouspositionsintheBankSupervision Departmentoverthelast18years.Hehasbeeninvolvedinthedevelopmentoflegaland regulatoryframeworksforshariacompliantbanking,microfinance,digital financialservices,creditinformationsharing,andagentbanking.BeforejoiningtheCentralBankof Kenya,MrMugoworkedasanauditorforKPMG,aninternationalauditandconsultancy firm.HeholdsFirstClassBachelorofCommerce(Accounting)andMBA(Finance)degrees fromtheUniversityofNairobiandisacertifiedpublicaccountant.MrMugowasaFellow oftheFinancialInclusionLeadershipProgramattheFletcherSchoolofLawand Diplomacy,TuftsUniversity,USAin2011.
LydiaNdirangu isaresearcherbasedattheKenyaSchoolofMonetaryStudies.Shehasa broadpublicpolicyresearchexperienceasadevelopmenteconomist.Beforejoiningthe CBKin2010,sheworkedasaPolicyAnalystattheKenyaInstituteforPublicPolicy ResearchandAnalysis(KIPPRA)foreightyears,mainlyfocusingontherealsectorand rural financialmarkets.HerinitiationintoeconomicpolicyworkwasattheInstituteof PolicyAnalysisandResearch(IPAR)andattheCoffeeResearchFoundationbetween1991 and2000.Hercurrentresearchfocusisonmonetarypolicy,interbankmarkets,and financialinclusion.SheholdsaPhDdegreeinDevelopmentEconomicsfrom WageningenUniversity,theNetherlands;MScinAgriculturalEconomicsandBScin Agriculture,bothfromtheUniversityofNairobi.
KethiNgoka-Kisinguh istheHeadofExternalSectorDevelopmentattheCentralBankof Kenya.ShealsoworkedasaneconomistintheofficeoftheIMFResidentRepresentativeto Kenya,onsecondmentfromtheCentralBankofKenyaandwaspartofateamthat monitoredmacroeconomicdevelopmentsandtheimplementationofKenya’ sprogramme withtheIMF.Kethiisalsoanaccomplishedresearcherandhaspublishedinrefereed journalsandpresentedpapersatbothregionalandinternationalconferences.Kethiholdsa BA(Hons)fromtheUniversityofNairobiandanMSc.inEconomicsfromtheUniversity ofLeeds.ShehasalsoundertakenshortcoursesinMacroeconomicsandEconometricsat theLondonSchoolofEconomics(LSE).
EsmanNyamongo istheAssistantDirectorandHeadoftheRealSectorAnalysisDivision, intheResearchDepartmentoftheCentralBankofKenya.PriortojoiningtheBankin 2008,hewasaLecturerattheDepartmentofEconomicsUniversityofPretoria,South Africa,fortwoyears,wherehelecturedineconometrics,microeconomics,andpublic financetobothundergraduateandgraduatestudents.Previously,healsoworkedasan economistintheMinistryofFinanceandPlanningandtheMinistryofNational
DevelopmentinKenya.Hehasasolidpublicationrecordandhaspresentedpapersatboth regionalandinternationalconferences.EsmanholdsaPhDfromtheUniversityofPretoria, SouthAfrica,anMA(inEconomics)fromtheUniversityofNairobi,anMAinEconomic PolicyManagementfromMakerereUniversityandaBAfromtheUniversityofNairobi.
JohnRwangombwa istheGovernor,NationalBankofRwanda.HewasappointedCentral BankGovernoron25February2013.HiscareerstartedinRwandaRevenueAuthority wherehegrewthroughrankstotheDeputyCommissionerofCustomsforOperations.He thenjoinedtheMinistryofFinanceandEconomicPlanningin2002astheDirectorofthe NationalTreasuryDepartment.HavingservedastheMinistry’ s firstAccountantGeneralin 2005,MrRwangombwawasappointedPermanentSecretaryandSecretarytotheTreasury inthesameyearandin2009hebecametheMinisterofFinanceandEconomicPlanning.At thattime,heoversawtheelaborationandimplementationofRwanda’ s firstEconomic DevelopmentandPovertyReductionStrategy(EDPRSI),underwhichRwanda’ seconomy wasabletoachievehighgrowthatanaverageof8percentandpovertywasreducedby12 percentin fiveyearsfrom2006to2011.InjustthreeyearsatthehelmoftheCentralBank, MrRwangombwahasbeenabletomaintainthestabilityoftheRwandaneconomyandits financialsector.HewasfurthervotedGovernoroftheYear2015fortheSub-Saharan RegionbyEmergingMarkets.MrRwangombwaservesasmemberofvariousadvisory bodiesincludingthePresidentialAdvisoryCouncilandWorldEconomicForumonGlobal AgendaCouncil.
TavneetSuri isanAssociateProfessorofAppliedEconomicsattheMITSloanSchoolof Management.Suriisadevelopmenteconomist,witharegionalfocusonSub-Saharan Africa.Herresearchcentresonagriculture,household financialaccess,andinformalrisk sharing,and,morerecently,governanceandpoliticalparticipation.Alargebodyofher workfocusesontheconstraintstotechnologyadoptioninagriculture.Shehasalso conductedalotofresearchontheimpactsofmobilemoney(forexample,M-PESAin Kenya)andapplicationsofthemobilemoneyplatformforcreditcontracts(e.g.tradecredit andcreditforsolarpanels).Hermostrecentworkhasfocusedongovernanceissuesinthe KiberasluminNairobiandalarge-scale fieldexperimentsheconductedinKenyaduring the2013generalelection(theprojectwhere ‘theysentamilliontextmessages,literally!’). Shespendsalotoftimeinthe field,collectingherowndata,primarilyinKenya,Sierra Leone,andRwanda.SheistheScientificDirectorforAfricaforJ-PAL;aFacultyResearch FellowattheNationalBureauofEconomicResearch;anaffiliateofBREADandCEPR;and co-directoroftheAgricultureResearchProgramattheInternationalGrowthCenter.Suri holdsaBAineconomicsfromTrinityCollege,CambridgeUniversity,aswellasanMAin internationalanddevelopmenteconomics,anMPhilineconomics,andaPhDfromYale University.
DanielTallam istheAssistantDirectorandHeadoftheFinancialSectorAnalysisDivision intheResearchDepartmentoftheCentralBankofKenya.Hehasover15years’ experience attheCentralBankwherehehasheldvariousseniorpositionsintheResearchDepartment, theRuralFinanceDevelopmentandtheBankSupervisionDepartment.Hespecializesin financialsectoranalysisandhasdeepunderstandingofthe financialmarkets, financial legal,andregulatoryenvironment.Daniel’scareerbeganwithworkingasanEconomistand
StatisticianattheLongRangePlanningDivisionintheMacroPlanningDepartmentofthe MinistryofFinanceandPlanning,whereheworkedforoneyear,beforemovingtoEgerton UniversityasaLecturerinEconomics.HelaterjoinedtheMinistryofFinance(The NationalTreasury)asaDeputyDirectorandHeadoftheMonetaryAffairsDivisionin theFiscalandMonetaryAffairsDepartmentforthreeyears.Danielhasbeeninstrumental indevelopingkey financialsectorpolicies,legal,andregulatoryframeworksincluding chairingtheAnti-MoneyLaunderingTaskforceduring2001–04,policyandlegalframeworksformicrofinancebanksandSACCOsocieties,andcreditinformationsharingand agencybankingframeworks.HeholdsanMAinEconomicsfromtheUniversityofNairobi.
LeonardThotho joinedtheCentralBankofKenyainJune2007asaGraduateTrainee.He worksintheFinancialMarketsDepartment,intheareaofpublicdebtmanagementand financialmarketdevelopmentandisamemberoftheCBKFinancialInclusionand InnovationsTeam(FIIT).HeisaholderofMastersofScienceinFinancefromKenyatta University,MasterofScience(Demography),andBachelorofArtsinEducation(Statistics) bothfromtheUniversityofNairobi.HeisalsoaCertifiedPublicAccountantKenya (CPAK)andamemberofICPAK(InstituteofCertifiedPublicAccountantsofKenya) andAccreditedFellowoftheMacroeconomicandFinancialManagementInstituteof EasternandSouthernAfrica(MEFMI),intheareaofSovereignDebtManagementand CapitalMarketDevelopment.MrThothohasovertenyearsworkexperienceinpublicdebt management, financialmarketsdevelopmentand financialsectorissueshavingworkedat theCentralBankandwiththeNationalTreasuryinKenya,andfacilitatedinseveral internationalworkshopsinAfricaasaresourceperson.Hehasparticipatedinvarious regionalinitiativessuchastheinstitutionalizationoftheBankofSouthSudan(BSS),an initiativeoftheCentralBanksofSouthSudanandKenya;andtheFinancialMarkets Subcommittee(FMS)oftheMonetaryAffairsCommittee(MAC)oftheEastAfrican Community(EAC)CentralBanks.
CarolineWanjiku isagraduateofEconomicsandFinancefromKenyattaUniversity, currentlypursuingamaster’sdegreeinEconomicsattheUniversityofNairobi.Her academicpursuitstretchestothe fieldsofaccountingand financewhereshehasattained CertifiedPublicAccountantsIIcertification.HavingjoinedCentralBankofKenyasince 2014,sheholdsawealthofknowledgeandunderstandinginpublicdebtmanagement.Her keeninterestsareinpublic financeanddebtsustainabilityandmonetaryanalysis.Her passionforprudentpublicdebtmanagementcannotbeoveremphasized.Hercurrent researchisfocusingontheinteractionsbetweenpublicdebt,publicinvestment,andprivate investment.
MaureenWere worksintheResearchDepartmentattheCentralBankofKenyaasa Manager,MacroeconomicModellingandForecastingDivision.DrWereisaseasoned economistwithaconglomerationofexperienceinmacroeconomicpolicyanalysis, research,economicmodelling,forecasting,andteaching.BeforejoiningtheCentralBank in2008sheworkedattheKenyaInstituteforPublicPolicyResearchandAnalysis (KIPPRA)asaPolicyAnalystintheMacroeconomicsDivision,taughtEconomicsatthe EgertonUniversityandworkedattheInstituteforPolicyAnalysisandResearch(IPAR).In 2013shecompetitivelywonaone-yearMoIbrahimLeadershipFellowshipawardthatgave
herawealthofleadershipandinternationalworkexperienceattheWorldTrade OrganizationinGeneva.Shehaswrittennumerousresearchpapersonvarioustopics includingmacroeconomicpolicyissues,monetarypolicy,macromodelling,trade,growth, gender,anddevelopment,mostofwhicharepublishedinrefereedjournals.ShehasaPhD andMaster’sdegreeinEconomicsfromtheUniversityofDar-es-SalaamandUniversityof Nairobi,respectively.
Introduction
PatrickNjorogeandVictorMurinde
1.1Background
Thisbookaimstodocumentimportantmilestonesintheepicjourneytraversed bytheCentralBankofKenya(CBK)overthelast50years,puttingintoperspectivetheevolutionofcentralbankinggloballyandwithintheEastAfricanregion, andcontemplatingfutureprospectsandchallenges.
Thebookistimely,mainlybecausewithinthelast50years,theglobal financial landscapehasshifted.Centralbankershaveexpandedtheirmandatesbeyondthe singularfocusoninflationandconsidereconomicgrowthastheirotherimportant objective.Intermittentepisodesof financialcriseshavecontinuedtodisruptthe functioningof financialinstitutionsandmarkets,themostdevastatingonebeing theglobal financialcrisisthatbrokeoutin2008andfromwhichtheglobal financialsystemhasnotfullyrecovered.BankregulationhasmovedfromBaselI, toBaselII,andsomecountrieshavefullymigratedtoBaselIIIwhilesomearestill atthecrossroads.Economictheoryhasalsogonethroughsomeseriousrethinking,fromKeynesiandemandmanagementtosupply-sidestructuralism,rational expectations,andfurthertodynamicstochasticgeneralequilibriummodelsthat centralbanksareusingforthenewnormalofmonetarypolicyatzero-bound interestrates.
Thebookcapturesthewide-rangingdiscussionsoncentralbanking,froma symposiumtocelebratethe50yearanniversaryon13September2016inNairobi. Theparticipantsatthesymposiumincludedcurrentandformercentralbank governorsfromKenyaandtheEastAfricaregion,high-levelofficialsfrominternationalorganizationsandmultilateral financialinstitutions,policy-makers, executivesofcommercialbanksinKenya,private-sectorpractitioners,civilsociety agents,executives,andresearchersfromthinktanksbasedinKenyaandtheAfrica region,leadingacademicsinbankingand finance,anduniversitystudents.
Beyondthesymposium,thebookhighlightstheevolutionofspecificfunctions oftheCBKoverthelast50years(suchasmonetarypolicy,bankregulation,and paymentssystem),aswellasdevelopmentsinKenya’ s financialsystemwhich stronglyrelatetothefunctionalityoftheCBK,suchas financialinnovation,the evolutionof financialmarkets,andnon-bank financialinstitutionsinKenya.
PatrickNjorogeandVictorMurinde, Introduction In: 50YearsofCentralBankinginKenya:RegionalandGlobalPerspectives Editedby:PatrickNjorogeandVictorMurinde,OxfordUniversityPress(2021).©TheCentralBankofKenya. DOI:10.1093/oso/9780198851820.003.0001
