Lawmakers want CBK governor questioned on transaction rule

Members of Parliament (MPs) have demanded that Central Bank Governor (CBK) Patrick Njoroge be questioned on the rule requiring banks to ask for documentation on transactions of more than Sh1 million.

On Wednesday, the lawmakers said the regulation had made their campaigns difficult.

This was after National Assembly Majority Leader Aden Duale and other MPs questioned the rule, terming it unfair and primitive.

“I want to assure the House that I will exercise our discretion and invite the governor to show us the rules he is relying on,” William Cheptumo, the chairman of the National Assembly’s Committee on Delegated Legislation, said.

The committee scrutinises regulations developed by agencies Parliament has allowed to make rules.

The rule was introduced in January last year as part of guidelines by the CBK under additional guidelines to large cash transactions.

“Every time you want to deposit or withdraw Sh1 million, you have to provide documents. Call the CBK governor and ask where he derives these powers from,” Mr Duale said.

“This is a governor who doesn’t have an account. This country can’t have a governor of the Central Bank who doesn’t know how a current or a savings account works,” Mr Duale said to the chagrin of Catholic MPs.