Duale turns chase on CBK governor over bank’s woes
National Assembly Leader of Majority Aden Duale in a jig with parents of Karaguririo Primary School in Mukurwe-ini where he was the chief guest during a prize giving day for the institution on April 8, 2016. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP
What you need to know:
- While reiterating Mr Duale’s sentiments the three leaders said CBK should publish a list of all collapsing banks in the country to allow depositors to withdraw their money in good time.
- In 2015, Dubai Bank Kenya became insolvent after experiencing serious liquidity and capital deficiencies. In the same year CBK also placed Imperial Bank under receivership due to illicit banking practices by its directors.
National Assembly Leader of Majority Aden Duale has issued a three-week ultimatum against treasury cabinet secretary and Central Bank of Kenya (CBK) governor to announce how Chase Bank depositors will recover their money.
Speaking in Karaguririo Primary School in Mukurwe-ini constituency during a prize giving day on Friday, Mr Duale said that it was unfair for the close to 50,000 depositors who had saved money with the troubled Bank to be locked out without answers on the fate of their savings.
Mr Duale said CS Henry Rotich and CBK governor Patrick Njoroge should account for the Kenyan depositors.
“Many other Kenyans have previously lost money through Dubai Bank and Imperial Bank and this cannot be allowed to continue. Mr Rotich and Mr Njoroge must account for the safety of the Kenyan depositors,” he said.
Also present during the function were Mukurwe-ini MP Kabando Wa Kabando, Thika Town MP Alice Ng’ang’a and Nairobi Women Rep Racheal Shebesh who called for stiffer regulations in the banking industry in Kenya.
While reiterating Mr Duale’s sentiments the three leaders said CBK should publish a list of all collapsing banks in the country to allow depositors to withdraw their money in good time.
The leaders also said that they will introducing amendments to the existing banking laws to ensure that bank directors do not manipulate the rules to their benefit.
“Banks have become pyramid schemes where a few individuals use the money of hardworking Kenyans to enrich themselves and then disappear with their money,” said Mr Kabando Wa Kabando.
“The amendments will also allow depositors to be paid back their money in the event that a bank collapses like was the case with Chase Bank which has left many Kenyans suffering,” said Ms Alice Ng’ang’a.
Chase Bank was placed under receivership on Wednesday becoming the third bank to fall in that category in less than a year.
In 2015, Dubai Bank Kenya became insolvent after experiencing serious liquidity and capital deficiencies. In the same year CBK also placed Imperial Bank under receivership due to illicit banking practices by its directors.
