Hours after Central Bank of Kenya, through CBK Governor Patrick Njoroge announced measures it had taken to cushion the economy from the adverse effects of the novel coronavirus, Gatundu South MP Moses Kuria has expressed his displeasure.
Through his Facebook page, the vocal legislator accused the governor of doing little to lower the Central Bank Rate, CBR and Cash Reserve Ratio, CRR.
According to Kuria, it was wrong for the governor to ignore such addresses when it was currently very essential in sustaining the economy of the country.
Despite this, the MP expressed his optimism, hoping the Monetary Policy Committee (MPC) will provide a solution to the same when they meet later in the day.
“Very disappointed that CBK Governor has not deemed it fit to lower CBR or cut the CRR. Lets hope the MPC is meeting this afternoon for the same,” posted Kuria on Facebook.
At the same time, the legislator wondered why the government had not taken into consideration the pleas by most Kenyans to have their landlords lower rent money for the time the country is experiencing corona pandemic.
“Equally disappointed no one appealed to landlords to be more understanding and accommodating in these extraordinary times. Anyway God is mightier that Corona Virus,” added Kuria.
Patrick Njoroge, CBK Governor: To ensure the virus is not transmitted via cash, all cash exiting banks will be quarantined for 1 week. Mobile money transactions shall be enhanced with the limit per transaction now at Ksh. 150,000 & monthly limit of Ksh 1 Million eliminated pic.twitter.com/W19pVs58CW
— Citizen TV Kenya (@citizentvkenya) March 18, 2020
Commercial banks in Kenya are required by law to keep a specified proportion of their total deposits at the Central Bank. This proportion of deposits is called the Cash Reserve Ratio (CRR), and when the Central Bank needs to significantly adjust the amount of money in the market, it can increase or decrease the ratio.
On January 27, 202, the Monetary Policy Committee (MPC) met and lowered the Central Bank Rate (CBR) to 8.25.
Kuria’s sentiments come after the governor, in meeting with the president at State House on Wednesday afternoon, announced that all the banks will be reviewing personal loans to ensure that borrowers in distress are given more time to repay them.
According to Njoroge, the banks had agreed to extend repayment periods for personal loans for up to one year.
Njoroge also revealed that the Medium-sized enterprises (SMEs) and corporate borrowers will from today contact their banks for assessment and restructuring of their loans based on their respective circumstances arising from the pandemic.
All these come in the wake of another three new coronavirus cases reported in the country.