The Central Bank of Kenya (CBK) has reassured the public that the country’s banking system remains stable, despite recent rumors of a money circulation shortage.
This follows reports suggesting that the limited money supply was due to withdrawal caps imposed by certain banks. However, CBK has swiftly dismissed these claims, affirming the sector’s stability and resilience.
In a public statement, CBK emphasized that the banking system is well-capitalized and secure. “The banking sector in Kenya remains stable, resilient, and adequately capitalized. Customers are encouraged to continue transacting as usual,” the statement read.
The bank also clarified that it had not issued any press releases or other information regarding any issues within the banking sector or its mandate.
CBK warned those spreading false rumors to cease immediately, as such actions could cause unnecessary panic and destabilize the market.
“We advise the public to disregard any misinformation. The intent behind these malicious attempts is often to induce panic, which could destabilize the market,” CBK stated.
The bank further noted that spreading such false information is a violation of several laws, including the Computer Misuse and Cybercrimes Act, and could lead to criminal prosecution.
The banking community has also rallied behind CBK, citing the country’s robust regulatory environment. Stakeholders highlighted the entry of JP Morgan, the largest US bank, into the Kenyan market as a sign of confidence in the sector.
“The recent announcement by JP Morgan to enter Kenya is a testament to the robust regulatory environment that CBK has created. Nowhere else in the world is your money this safe,” said Kenya Bankers Association Chairman John Gachora.
