Central Bank Of Kenya Chairman Mohammed Nyaoga on Friday announced that they are vetting afresh Directors and Senior employees of all commercial Banks in order to smoke out individuals with questionable integrity or conflicts of interest.
“CBK appreciates the importance of corporate governance in the banking sector because consumers put their money in these banks. We had challenges with some banks and some of those challenges are traceable to weak corporate governance structures which may have arisen from boards or share owners. We are now re-vetting directors to ensure that we have directors who can perform their role effectively in the board.” said Mr Nyaoga during a corporate governance conference held in Nairobi.
Mr Nyaoga affirmed Dr Patrick Njoroge’s recent remarks that CBK had revamped its supervisory personal after hiring more experts to enhance inspection of banks including corporate governance practices, integrity of information and disclosure requirements.
“Most of the banking problems we have had were related to weak corporate governance perpetuated through internal fraud. We are also insisting on banks refining their governance structures in terms of policies, systems, processes and procedures. All this is to ensure that we don’t expose consumers to bad governance practices in these institutions,” he said.