National Assembly Minority Leader John Mbadi has conveyed his frustrations with Central Bank Governor Patrick Njoroge, vowing to take action against him.
Mbadi vows to punish CBK boss Patrick Njoroge after "hellish" ordeal with bank
John Mbadi details "hellish" experience with bank
Flanked by his Majority counterpart Aden Duale, the two were upset with Kenyan banks terming their experiences as "hellish" whenever they attempt to transact amounts that are above Sh1 million.
Together with other MPs, they further claimed that the CBK Governor is to blame for the hurdles and have vowed not to renew his term in office when his contract expires in March 2019.
They have further summoned the governor to appear before Parliament as his final chance to win their approval, following two unsuccessful summons.
"We gave the CBK a second chance to bring the regulations but he has failed…they engaged us in a cat-and-mouse game. We have issued the last invitation," Finance Committee chair Joseph Limo warned.
Mbadi's hellish ordeal with Kenyan Bank
"When I received my mortgage, Barclays Bank asked me to explain where the money came from.
"When you sell your three camels you're asked where the money is coming from.
"If I am transferring my money from one account to another, why should I explain the source?" MP Mbadi posed.
Defending the banks, Kenya Bankers Association (KBA CEO Habil Olaka explained that the rules are a globally accepted way of operation to avoid facilitating money laundering schemes as well as corruption.
"We are part of the global system that seeks to insulate the industry against money laundering and financing of terrorism," Olaka stated.
Suna East MP Junet Mohammed, however, claims that the Sh1 million limit has affected well-meaning business professionals.
"What the CBK governor is doing is unacceptable and illegal. You can’t just wake up one morning and do irregularities in form of circulars and memos to financial institutions.
"We are not supporting illicit trade and money laundering when genuine business is being frustrated, we can’t keep quiet," Junet vowed.
Dr Njoroge is expected to appear before the MPs on Tuesday.
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