NAIROBI, Kenya, Mar 10 – National Assembly Majority Leader Aden Duale has accused Central Bank of Kenya (CBK) Governor Patrick Njoroge of introducing archaic regulations to question Kenyans transacting over half a million shillings in cash.
Duale stated that the new regulations which took effect on January 1 are intimidating, while saying Njoroge is trying to introduce the Catholic’s Opus Dei rules in the banking sector.
“That sect within the Catholic is very rigid and that cannot be transferred to the running of Central Bank. Mr Speaker, we have a Governor of Central Bank who wakes up one morning and sends a memo to all the banks and says any Kenyan who wants to deposit Sh500,000 must fill a form as if you are appearing before the DPP or before the Director of CID,” he said.
“Every Kenyan who wants to withdraw Sh1 million must also fill another form as if you want to get a certificate of good conduct.”
Duale was contributing in the Banking Amendment Bill that seeks to cap interest rates during Thursday morning debate when he also accused banks of hiking interest rates that are hurting Kenyans.
“We are only saying the principal sum you borrow and the interest rate you are charged, the proportionate must be known. There is no way the principal sum you borrowed is lower ten times. Many Kenyans die because of interest rates. Their properties are auctioned,” he said.
The legislators who supported the Bill want the interest rates capped.
“We can’t run an economy whose sole purpose is to serve the banks and make their profits big. The banks should only be allowed to charge a certain percentage and that is 4 percent. Madam Speaker, this is the best thing we can do for our country at this time,” Seme legislator James Nyikal said.
“The blame should not just go to the banks only. It is our CBK which is our financial institution that should also bear the weight of the blame.”