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MPs want Central Bank rule on moving Sh1 million reversed


gbaaho81tijyxsds58dbf6ae7d54b MPs want Central Bank rule on moving Sh1 million reversed

NAIROBI: MPs have demanded the scrapping of a directive by the Central Bank of Kenya to financial institutions limiting transactions of more than Sh1 million.

The lawmakers yesterday expressed the frustrations they had been undergoing, as the banks moved to comply with the directive issued over a year ago by CBK Governor Patrick Njoroge.

Led by Majority Leader Aden Duale, the MPs said the directive was illegal, pointing out that the guideline was not based on any law.

“Before depositing or withdrawing over Sh1 million, a customer is required to fill a form. Where did the CBK governor get powers to introduce the guidelines, which he did through a memo to the banks?” said Duale.

He added: “We want Dr Njoroge called before this House to explain where he got the powers from. This House never passed such law. The public including MPs should not be inconvenienced by being made to fill the forms, when such requirement is not within the framework of the law.”

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Under the regulations, a customer is required to state where they are taking the money, for what use and justify why they are not using electronic transfer options.

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