of Kenya Act2.
The banking regulator CBK should be keen in monitoring banking institutions and step in
immediately financial institutions start ailing rather than waiting until the damage becomes
irreparable. This contradicts the regulators role of protecting interests of depositors. Decisions to
wind up financial institutions is unreasonable and do tarnish the reputation of Kenya’s financial
institutions to the international community. Kenya’s economy being Africa’s powerhouse needs
to be jealously guarded. CBK is therefore obliged to consider proposals for injection of capital
in a bid to rejuvenate crumbling banks. The Central Banks must also tighten their vetting
process of the bank's top level management by conducting life style audits and of those
connected to them in collaboration with security agencies.
More stringent measures need to be put in place against perpetrators .The 'return the money'
policy is not effective in curbing corruption. We should focus on closing the loop rather than
asking perpetrators to return money and go scott free. Time is now to go beyond by freezing
assets of those firms and individuals implicated in the scam before the rotten fish contaminates
the entire system.
Ethics in the financial sector are vital for survival of the financial system. It is now evident that
fraudulent schemes of top level management pose substantial risk than fraud from customers,
robbers and bandits. CBK should be keen to ensure that ethical minded people are at the helm of
our financial institutions. Kenyans need to be reassured that their hard earned life savings are
safe in the banks. If this rot is not effectively dealt with, the public and our economy is doomed.