Central Bank Governor, Patrick Njoroge reappointment will face hurdles as Members of Parliament have opposed him due to the stringent banking regulations.
The MPs have protested that Njoroge imposed his own laws when CBK set a daily transaction limit of Ksh1 million without attracting the attention of investigators.
Currently, all cash deposits or withdrawals above Ksh1 million require the person transacting to disclose why the large transaction is necessary, the source of the money, full identities of the direct and indirect beneficiaries among other details.
The National Assembly’s Finance Committee has issued the last invitation to the governor to appear in Parliament on Tuesday to defend the laws.
“We gave the CBK a second chance to bring the regulations but he has failed … they engaged us in a cat-and-mouse game. We have issued the last invitation,” warned Joseph Limo, the committee’s chair.
National Assembly Majority Leader Aden Duale has also faulted Njoroge’s regulations, claiming that when he received his mortgage, the bank asked him to explain where the money came from.
“When you sell your three camels, you are asked where the money is coming from,” protested Duale.
He also quipped that even transferring his money from one account to another was inconveniencing.
The CBK set the regulations in 2016 after it emerged that the banking industry players were vulnerable to money laundering and terror financing.
The laws further require the approval of the branch manager for cash transactions of Ksh1 million to Ksh10 million while cash transactions of Ksh10 million to Ksh20 million will require the approval of the regional branch manager or the senior manager.
The head of branch banking or the director will approve cash transactions of more than Ksh20 million.