Police have started a crackdown on social media users it accuses of spreading false information about Chase Bank two days after the troubled lender was placed under receivership over insider lending.
Yesterday, the police arrested David Mukunzi in a move that caused uproar among social media users who accused the Government of knee-jerk reactions and scapegoating.
"It's one thing to alert acquaintances about matters that are truthful and factual, but we shall not allow persons that are driven by malicious considerations to peddle falsehoods to mislead members of the public," said Inspector General Joseph Boinnet in a statement.
Mr Boinett said Mr Mukunzi, and any other social media user accused of the same, will be charged with "misusing social media to disseminate falsehoods about the banking sector".
"We accordingly wish to caution members of the public to be wary of such messages and refrain from disseminating the same, lest they fall afoul of the same," he said.
Mukunzi's arrest came two days after Central Bank Governor Patrick Njoroge accused social media users of accelerating a run on Chase Bank, forcing CBK to place it under receivership for a year.
"Since October there had been concerns and a few banks had posted narrow margins and were cleaning their balance sheets; non-performing loans were being recognised and they were providing for this which was all good," Dr Njoroge explained.
Chase Bank was placed under receivership on Thursday morning following revelations that senior bank officials had lent themselves and their business entities a total of Sh16.6 billion and the bank had a further Sh8.7 billion in bad debts.
Njoroge said Chase Bank was teetering on the brink and could've been salvaged, but the institution was pushed into receivership by alarmist rumours spread on Twitter and WhatsApp.
"None of us have a right to shout fire in a crowded theatre and this is what happened. We had some individuals who did shout fire and to me that was very reckless because no bank can sustain the pressure of everyone trying to withdraw their money at once," he said.
The move by Boinnet and the CBK to fault social media on yet another crisis has rekindled the debate of freedom of expression online and the place of social media engagement in achieving change.
A report released by research firm Portland on Wednesday stated that Kenyans are the fourth largest community on Twitter, with 125 million tweets originating from the country in 2015.
Kenya, characterised by an increasingly young demographic, relatively affordable internet costs and availability of affordable internet enabled devices, has elevated the country's profile as a country that utilises social media to drive conversations and achieve social change.
In the past, Kenyans on Twitter, popularly known as KOT, have been credited with fundraising for needy causes, demanding for accountability from the Government and calling out politicians on wrongdoing.
Even the country's top most office has borne the wrath of Kenya's online community on more than one occasion. After Uganda's disputed elections in February, KOT took offence with President Kenyatta's decision to congratulate President Museveni "on behalf of all Kenyans" despite reports of massive electoral malpractice and an opposition crackdown.
A hashtag "#UhuruisnotKenya" quickly started trending, with Twitter users condemning the move by Uhuru to side with Museveni at the expense of the Ugandan and Kenyan people.
There has, however, been criticism about the misuse of social media channels to spread unfounded rumours or to settle scores. This is made easy by the fact that many users take little time to verify information before sharing it, often leading to a snowball effect that can be catastrophic.
According to a study by research centre PLOS One, the use of Twitter during the four-day Westgate siege did more harm than good.
"The abundance of Twitter accounts providing official information made it difficult to synchronise and follow the flow of information," said the report. "Many organisations posted simultaneously, by their manager and by the organisation itself, threat assessment was updated through the information posted on social media and security breaches led to the relay of sensitive data."
The report further stated that misinformation was at times corrected after two days. The study recommends developing a standard operating procedure during crisis scenarios to enable multiple responders to monitor, synchronise and integrate their social media feeds during emergencies.
"This will lead to better utilisation and optimisation of social media resources during crises, providing clear guidelines for communications and a hierarchy for dispersing information to the public and among responding organisations."
