Serious revelations have been made by Central Bank of Kenya Governor Patrick Njoroge while speaking before the Parliamentary Committee on Finance and National Planning on Tuesday,
He revealed that 99.3 percent of bank accounts in Kenya have less than Ksh.1million.
Njoroge also noted how the Goldenberg scandal took a toll on the country’s economy.
“Goldenberg scandal is a good cautionary tale as we know it devastated the economy to the weakest we have ever been,” the CBK Governor noted.
“The GDP fell to the lowest in the entire history of our country. Inflation surged to an all time record of 61.5% in January 1994.
“Treasury bill rates rose to a record 85% in July 1993. exchange rate depreciated by 143% between December 1991 and December 1993,” Governor Njoroge stated
He further noted that the scandal, a brainchild of businessman Kamlesh Pattni, weakened the banking sector as evidenced by the collapse of several banks during the period