Gov’t taking measures to streamline financial sector- Ruto

The Government is undertaking measures to streamline the financial sector in order to secure investments and create a fair and conducive environment for investment, this is according to Deputy President William Ruto.

The Deputy President  said the Central Bank of Kenya (CBK) will ensure operations of banks in the country are aboveboard to eliminate malpractices.

“Even as we do so, we will subject to the law those who use their positions to put the banks at risk and those who use the internet or any other form of media to propagate and spread malicious rumors in the financial sector with the aim of causing unnecessary panic and anxiety,” said Ruto.

The Deputy President spoke Friday evening at the Energy Management Awards (EMA) Gala held at a Nairobi hotel, an event that sought to bring together stakeholders in the energy sector to celebrate excellence in energy management.

“We want to make sure that our financial sector is on sound footing,” said the DP. “We want to eliminate any malpractices, or persons or people who are not playing by the rules. ”

“I want to persuade all of us to work together with our financial sector as we go through the phases of ensuring we have a sound financial sector,” he added.

Ruto’s statement came just hours after  Inspector General of Police Joseph Boinett ordered the immediate arrest of six senior managers at National bank and two Chase Bank directors.

The eight managers from two banks are at the centre of an investigation of mismanagement and perpetuation of unethical banking practices.

The order came a day after the Central Bank of Kenya Placed Chase Bank under receivership after it emerged the bank had concealed the amount of insider loans it had disbursed.

In National Bank, the six managers including CEO Munir Ahmed are subject of an internal audit over the bank’s financial performance.

Chase Bank sacked its Chairman Zuffrullah Khan and Group Managing Director Duncan Kabui on Wednesday, the same day its restated its financials.

The bank had irregularly lent Ksh 16.6 billion shillings to institutions and persons closely related to directors, shareholders and employees. In one case a director lent himself Ksh 7 billion without sufficient collateral.