27/02/2019 by ThinkBusiness 1 Comment
CBK Governor: Why removing Ksh 1 M threshold would collapse Kenya’s financial system
CBK Governor Dr. Patrick Njoroge, yesterday told the Parliamentary Departmental Committee on Finance and National Planning that it is impossible to change the amount that bank customers can deposit or withdraw from a bank because of the serious repercussions it would have on Kenya’s financial system.
Currently any withdrawals or deposits exceeding KSh 1 million (US$10,000) must be reported to the Financial Reporting Centre. This has attracted vitriol from several politicians and business people who feel it is inhibiting economic growth.
Kenya being a signatory to various global statues no terrorism, money laundering, and corruption, would be blacklisted and our financial system would be isolated from the rest of the world.
The governor noted that only 0.68% of all accounts in Kenya have balances in excess of Ksh 1 million, hence such a move would only benefit a very small number of people.