Members of parliament have claimed that CBK rules requiring disclosure of sources of cash and intended use have inconvenienced many, prompting some to avoid banking the cash.
During heated debate in Parliament, Suna East MP Junet Mohammed – who moved the motion – said the regulations were stifling business.
He claimed that some people had resorted to keeping money in the house because of the “prohibitive requirements”.
“What the CBK governor is doing is unacceptable and illegal. You can’t just wake up one morning and do irregularities in form of circulars and memos to financial institutions,” said Junet. “We are not supporting illicit trade and money laundering when genuine business is being frustrated, we can’t keep quiet.”
He asked his colleagues not to renew the governor’s contract when it expires in March for stifling market liquidity.
Majority Leader Aden Duale and his Minority colleague John Mbadi said the regulations had made it “a hell” to transact with banks. “When I received my mortgage, Barclays Bank asked me to explain where the money came from. When you sell your three camels, you are asked where the money is coming from.”
He said there were anti-money laundering laws and the Financial Reporting Centre that dealt with suspicious transactions.
Mr Mbadi narrated how he went through “hell” to transfer his mortgage.
“If I am transferring money from my account to another, why should I explain the source? These regulations were implemented without the input of Parliament,” he said.
The regulation, which took effect in 2016, requires anyone withdrawing or depositing more than Sh1 million ($10,000) to fill in a special form stating where the money is from or going to, who they are paying or receiving the money from and for what purpose.