Why Kenyan MPs are keeping millions in their houses instead of banks

Interesting reasons

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Interesting reports now indicate that Members of Parliament and other politicians in the country are avoiding storing their millions in banks.

This as a result of Central Bank of Kenya's regulations placing a cap on the amount of money one is allowed to withdraw at an instance.

According to the regulations issued in 2016 by CBK Governor Patrick Njoroge, Kenyans are required to fill in a special form stating where the money is from or is going, who they are paying or receiving the money from and for what purpose, either way.

The Government laid down the guidelines in a bid to curb money laundering in the country.

"While most cash transactions are carried out in legitimate business, large cash transactions which are characterised by informality and anonymity make bank transactions vulnerable to money laundering and terrorism financing," CBK's statement read in part.

Politicians are now resorting to stash bundles of money in their houses in order to access their million easily during this election period.

A report by a local daily divulged that some MPs who are opposed to this law want to take it back to Parliament for amendment.

“You have seen when the Ethics and Anti-Corruption Commission officers raid a home of a politician or anybody under investigations and millions of shillings in cash is recovered, an indication that people keep money in their houses instead of taking it to the bank,” Bondo MP Gideon Ochanda said.

Some legislators divulged that they opt to use their friends to withdraw huge amounts of money.

“It has really made life difficult for us. At the moment, we need to pay people whose cars we hire for campaign tours, tents, chairs and other items. When you have a big function and the bills of all these surpass Sh1 million, what do you do? Nobody trusts a cheque from politicians, especially during this campaign period, we have to pay in cash,” Kikuyu MP Kimani Ichung'wa noted.

Another lawmaker who requested to remain anonymous told the Nation that: “I have opened five accounts with different names and therefore I can withdraw five million in one day".

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