NAIROBI: The Central Bank of Kenya (CBK) says it is enhancing vetting management and directors of all banks. CBK Chairman Mohammed Nyaoga said this will curb fraud and improve the banking sector's corporate governance.
Addressing members of the Institute of Certified Public Secretaries of Kenya (ICPSK) monthly governance forum in Nairobi on Thursday evening, Mr Nyaoga said they do not want a repeat of what happened at Imperial and Dubai banks.
He said those who plunder public money must be made accountable and the proceeds recovered and culprits punished. "It is unfortunate that despite numerous reports of loss of public funds and subsequent recommendations to surcharge culprits, no tangible implementation has ever been effected," he said.
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He warned that "weak enforcement mechanisms, inability to have independent boards and political interference had created a gravy train for the corrupt and fraudsters to steal public funds."
ICPSK Chairman Nicholas Letting said increased awareness of good corporate governance among professionals will cut graft. "Good governance will enhance market discipline, promote stability of the financial system and ensure that the country enhances its position globally as a hub for financial innovation," said Letting.
