Kenyan president says financial sector is stable
He praised the central bank's move to protect depositors.Kenya's financial sector is stable, according to the country's president, Uhuru Kenyatta.
He promised the government will streamline the industry to secure depositors' money and warned that unscrupulous bank managers who use depositor's funds for selfish gains will face sanctions,
the Daily Nation reports.
"We applaud what the Central Bank governor is doing to
out unaccountable bank managers who do not mind the interests of their depositors," he
said, adding that this will
enable the country to have an "effective, stable and secure financial system".
Kenya has one of the highest ratios of banks relative to population in the world, standing at 0.93. In comparison, Nigeria has a ratio of 0.12 and South Africa a ratio of 0.35.
In the last nine months, three banks - Chase Bank, Imperial Bank and Dubai Bank - have been placed in receivership, which is believed to have caused a decline in market confidence towards small and midsize Kenyan banks.
Last week, Central Bank of Kenya governor Patrick Njoroge revealed that seven out of Kenya's 42 banks hold 80 per cent of the population's cash, adding that other banks are "starved of liquidity".