The Central Bank of Kenya (CBK) on Wednesday, rubbished ongoing claims that Kenya's 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.
The response comes after widespread rumors 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, CBK disputed the claims and 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.
"CBK has not issued any press release, or other information with regard to the operation of the banking sector or any other element of its mandate. We thus advise the public to disregard any such purported information," the statement continued.
According to CBK, the rumors were aimed to induce panic, leading to action that may destabilize the market.
"We wish to emphasize that creating or circulating such information is in contravention of several laws including the Computer Misuse and Cybercrimes Act, and will lead to prosecutions," CBK emphasized.
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.
"The Kenya Banking Sector is at its strongest in capital, liquidity, and other measures," Gachora wrote encouraging Kenyans to be proud of the milestones the Kenyan banking system has made in the years.
"We should be very proud as a country of our strong banking institutions," Gachora stressed.
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).
