The Central Bank of Kenya (CBK) has rubbished claims that the banking sector is on it's knees.
The Central Bank, has issued a presser following rumors circulating online alleging there's 'no money in Circulation' fueling fears of a financial crisis.
In an official notice, CBK affirmed to Kenyans that the Banking system is solid and that everyone should continue banking with confidence, disregarding the rumors.
"The banking sector in Kenya remains stable and resilient and is adequately capitalized. All customers should continue transacting as normal," reads part of the statement by Central Bank.
CBK went ahead to caution Kenyans to steer clear of the rumors and not fall prey to such false allegations. Kenyans have further been advised to only trust information from the Central Bank.
According to CBK, the rumors were aimed to induce panic, leading to action that may destabilize the market.
Kenyans have been advised to double-check all releases on CBK's official websites before believing any information they see online.
The Central Bank, has also cautioned individuals spreading the rumor's online, to cease or face legal action.
Speaking on the allegations, NCBA Group Managing Director, John Gachora advised Kenyans to ignore the rumors, clarifying that the bank's liquidity is stable.
Commercial banks are required to maintain a minimum liquidity ratio of 20 per cent, which Kenyans had alleged would be affected and go lower.
In it's most recent bullet, the apex bank noted that commercial banks' excess reserves stood at Ksh41.1 billion in relation to the 4.25 per cent cash reserves requirement (CRR).
In other news only 926 out of 33,000 government entities have disclosed beneficial ownership information for state tenders worth Sh213.73 billion as of October 2024.
Revealing a 97.2% non-compliance rate with procurement transparency requirements as of October 2024, according to IMF disclosures.
This low compliance mirrors similar challenges in the private sector, where 399,595 companies (50.28%) risk deregistration for failing to reveal secret shareholders.
The government has informed the IMF it plans to amend procurement laws to enable administrative action against non-compliant accounting officers and heads of procurement functions.
While also working to integrate the Public Procurement Information Portal (PPIP) with other government platforms, including the e-procurement system and Business Registration Services (BRS) e-registry.
This comes as the BRS separately reports that 50.28% (399,595) of registered companies have yet to disclose their secret shareholders' identities before the November 30 deadline, risking deregistration in a broader effort to combat corruption, money laundering, terrorism financing, and tax evasion.