The Central Bank of Kenya (CBK) has dismissed president Ruto’s orders to increase the daily transaction limit, saying the regulator won’t be drawn into taking actions aimed at satisfying political interests.
During his inauguration, President William Ruto made rosy promises to Kenyans touching on the operation of financial services in Kenya, including promising to review the law to increase the limit of heavy cash transactions handled by banks without a requirement for reporting from the current Sh1 million and relaxing the Credit Reference Bureau Framework (CRB) to allow more Kenyans access credit.
“I have been assured by the CBK that work on how to ease this burden without compromising the security of the financial system is underway. We shall take measures to drive down the cost of credit. Our starting point is to shift the CRB framework from its current practice of arbitrary, punitive and all or nothing blacklisting of borrowers, which denies borrowers credit. We will work with CRBs a new system of credit score rating that provides borrowers with an opportunity to manage on their creditworthiness. This will eliminate blacklisting,” Dr Ruto committed after being sworn in.
However, during an interview with Bloomberg on Wednesday, the CBK governor said the regulator’s operations could not be changed by a political administration and that the regulator would continue implementing its policies.