The Central Bank of Kenya (CBK) has responded to reports of cash shortage within the Kenyan Banking sector.
In a statement on Wednesday, November 13, CBK refuted the reports, saying the information has been circulated by malicious actors who may attempt to circulate erroneous information.
Further, CBK has asked customers to continue transacting normally, adding that a malicious attempt is meant to induce panic and disable the market.
“We thus advise the public to disregard any such purported information. The intent behind these malicious attempts is usually to induce panic, leading to action which may destabilize the market,” the statement read in part.
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Here is the CBK full statement:
The Central Bank of Kenya (CBK) is aware that malicious actors may attempt to circulate erroneous information online and other channels about the banking system. The banking sector in Kenya remains stable and resilient and is adequately capitalised.
All customers should continue transacting as normal. CBK has not issued any press release, or other information with regard to the operation of the banking sector or any other element of its mandate.
We thus advise the public to disregard any such purported information. The intent behind these malicious attempts is usually to induce panic, leading to action which may destabilize the market.
We wish to emphasize that creating or circulating such information is in contravention of several laws including the Computer Misuse and Cybercrimes Act, and will lead to criminal prosecutions.
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Kenyan Banks Issue Their Stance
At the same time, the Kenya Bankers Association Chairman and NCBA CEO John Gachora has broken silence on cash shortage.
Gachora has responded to concerns raised by Kenyans online, that a cap has been set on withdrawals from various banks.
Additionally, others lamented that there was not enough money in circulation, affecting even the wealthy in the country.
However, Gachora has refuted the claims, saying that the banking Sector is at its strongest in the capital.
Further, he has affirmed that the sector is also at its strongest in liquidity and other measures.
“The Kenya Banking Sector is at its strongest in capital, liquidity and other measures. We should be very proud as a country of our strong banking institutions. Those fellas making some funny noises should stay away,” he stated.
Also, he noted that the entry of JP Morgan into the country shows that it has a thriving regulatory environment.
“The recent announcement by JP Morgan to enter Kenya is a testament to the robust regulatory environment that the CBK has created. Nowhere else in the world is your money this safe!”
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