By Stephen Makabila
Central Bank of Kenya (CBK) is aggressively reforming its public communications function in response to high demand for policy information by various stakeholders.
Governor Njuguna Ndung’u observed that communication is essential to the functioning of any modern central bank as a policy tool.
“He said that communication enhances effectiveness by improving public understanding of policy objectives and enhancing the legitimacy of the message.
“An overriding priority for a central bank is to provide financial markets and by extension the general public, the confidence that its policy actions are in the public interest,” said Prof Ndung’u.
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By clearly explaining its objectives, he explained, central banks gain public support and in the process, secure the opportunity to shape expectations and influence behaviour in a desired direction. He said the last 15 or so years has witnessed major shifts regarding how central banks view their communications.
“The shift is validated by the linkage between enhanced communication and the achievement of economic outcomes. Transparency in the policy making process creates partnerships and best outcomes,” said Ndung’u during a business workshop organised by the banking sector regulator in Naivasha.
He said the prevailing emphasis on communication was informed by the need to balance increased demands for central bank independence with an equally necessary accountability to the public.
Web content
Some of CBK’s recent initiatives towards boosting its communication functions include acquisition of a web content management system with broad functionalities to enhance interactivity and navigation.
Others are participation in public education initiatives and awareness campaigns through involvement in trade fares such as the Agricultural Society of Kenya Shows, improvement in the quality of publications and improved mechanisms for handling media and public inquiries.
Ndung’u observed that to effectively execute its regulatory mandate, Central Bank of Kenya relies on a wide range of information inputs from various stakeholders, including the media.
