- Online reports claim Kenya's banking sector is on the verge of collapse due to US presidency transition
- CBK assures Kenyans that the banking sector remains stable and resilient, advising customers to transact as usual
- CBK expresses concern about misleading information meant to destabilise the market and induce panic among customers
The Central Bank of Kenya (CBK) has issued a press release warning the public about the circulation of false information regarding the stability of Kenya’s banking sector.
The warning follows online reports that claimed Kenya's banking sector is on the verge of collapse due to the impending transition in the United States presidency.
The CBK has assured Kenyans that the sector remains stable and resilient, and is adequately capitalised, advising customers to continue transacting as usual.
CBK’s response to false information
In its official statement, the CBK expressed concern about the spread of misleading information meant to destabilise the market and induce panic among customers.
The bank clarified that it has not issued any statements regarding the collapse of the banking system or changes in the sector's operations.
The CBK urged the public to disregard such unfounded rumours, reiterating that the banking sector in Kenya remains stable.
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The CBK also emphasised that any such attempts to spread false information are in violation of Kenya’s Computer Misuse and Cybercrimes Act.
“We wish to emphasise that creating or circulating such information is in contravention of several laws,” the statement read.
Banking regulations in Kenya
Kenya’s banking sector operates under the regulation of several key frameworks designed to ensure stability and protect depositors.
The primary laws include the Banking Act, the Central Bank of Kenya Act, and the Prudential Guidelines issued by the CBK.
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These regulations mandate banks to maintain adequate capital and liquidity levels, perform regular stress tests, and comply with strict risk management standards.
The CBK has also set up deposit protection schemes, which safeguard depositors in the event of a bank's collapse.
Kenyan banks are required to contribute to the Deposit Protection Fund, managed by the Kenya Deposit Insurance Corporation (KDIC), which reimburses depositors in case of insolvency.
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Verifying CBK communications
The CBK has advised Kenyans to verify all press releases and statements through its official channels, which include its website and social media platforms.
"We advise the public to double-check all releases on these platforms," the CBK stated, directing the public to its official website, X, LinkedIn, Instagram, Threads, and its WhatsApp channel for reliable information.