Banking sector is stable, CBK clarifies amid concerns over money circulation shortage

For the better of the past two weeks, reports alleged a lack of enough money circulating across the country, attributed to a cap introduced by some banks on the amount one can withdraw. 

CBK, in a statement, dismissed the reports and emphasised that the sector is stable and resilient. The entity appealed to Kenyans to rely on information from its official channels and disregard reports that would cause panic. 

Little money in circulation will result in minimal spending and hence negatively affects the country's gross domestic product. 

"The banking sector in Kenya remains stable and resilient, and is adequately capitalised. All customers should continue transacting as normal," the statement read in part. 

"CBK has not issued any press release, or other information with regard to the operation of the banking sector or any other element of its mandate."

CBK further warned those propagating such rumours to desist from causing panic to the public or face the law. 

"We thus advise the public to disregard any such purported information The intent behind these malicious attempts is usually to induce panic, leading to action which may destabilise the market," CBK noted. 

"We wish to emphasise that creating or circulating such information is in contravention of several laws including the Computer Misuse and Cybercrimes Act, and will lead to criminal prosecutions."

Stakeholders in the banking sector also defended the country's robust regulatory environment created by the CBK. 

They pointed out the entry by JP Morgan, the largest US bank with assets totaling Ksh.501 trillion, as a testament to the positive outlook. 

"The recent announcement by JP Morgan to enter Kenya is a testament to the robust regulatory environment that the CBK has created. Nowhere else in the world is your money this safe," Kenya Bankers Association (KBA) chairman John Gachora posted online while supporting CBK's statement.