NAIROBI, KENYA: At least 10 financial institutions are under investigations following the Sh10 billion National Youth Service tender scam.
Local dailies name Kenya Commercial Bank, Standard Chartered Bank (Kenyan Unit), Stanbic Kenya, Equity Group, Barclays Kenya, Co-op Bank , National Bank, Diamond Trust, Consolidated Bank and Unaitas.
George Kinoti, the director of criminal investigations, told Reuters the list published by a local daily newspaper was accurate.
“They will be investigated,” he said, without offering more details.
Lamin Manjang, the chief executive of Standard Chartered Kenya, said: “We are unable to comment on the matter since it is under investigation by the authorised government agencies.”
KCB said in a statement: “This issue is under inquiry by legally mandated investigating authorities and is a subject matter of a court case.”
Other banks named in the list were Stanbic Kenya, Equity Group, Barclays Kenya, Co-op Bank , National Bank, Diamond Trust, Consolidated Bank and Unaitas, a financial co-operative.
Barclays Kenya said it takes governance seriously. “We are aware of the ongoing investigation at the National Youth Service. The matter is being investigated by the relevant government authorities,” it told Reuters.
“At Barclays Bank of Kenya, we take governance very seriously and to that end, we always co-operate fully with any investigating agencies as called upon.”
The other seven institutions were not immediately available to comment.
Central bank governor Patrick Njoroge said on Tuesday an unspecified number of lenders were under investigation, with the first phase focusing on tracing the recipients of the funds from the NYS and recovering the assets.
