Is Kenya’s banking sector collapsing? Central Bank of Kenya (CBK) sets the record straight.

Thursday, November 14, 2024 – Kenyans are a worried lot following the rumours that Kenya’s banking sector may collapse anytime soon.

The rumour emerged online claiming that the local banking systems would collapse following US President-elect Donald Trump's ascent to power in January next year.

However, the Central Bank of Kenya (CBK) has rubbished the claims that the banking system is set to collapse 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 CBK.

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 CBK alone.

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.

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 its 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). 

The Kenyan DAILY POST