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CONTENTS GOVERNOR S FOREWORD .. 5 DIRECTOR S FOREWORD .. 7 CHAPTER 1 INTRODUCTION .. 9 CHAPTER 2 REGULATORY FRAMEWORK .. 13 CHAPTER 4 CONDITION AND PERFORMANCE OF THE MICROFINANCE 19 CHAPTER 5 RESPONSES TO CHALLENGES IN THE MICROFINANCE SECTOR .. 27 CHAPTER 6 ROLE OF MICROFINANCE IN financial inclusion .. 29 CHAPTER 7 OUTLOOK .. 35 APPENDICES 39 MISSION STATEMENT MIMISSION STATEMENT Vision To become a transformative and responsive Central Bank. Mission Maintaining financial stability and financial inclusion through credible policies and risk based supervision of banks, supported by a skilled human resource base and a modern integrated ICT system.

MIMISSIO N STATEMENT Vision To become a transformative and responsive Central Bank. Mission Maintaining financial stability and financial inclusion

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