Reopening Charterhouse Bank a mockery to Kenya’s development

By Charles Wanguhu

On June 23, 2006, the Central Bank of Kenya (CBK) placed Charterhouse Bank under statutory management. Six years later the Charterhouse Bank saga still rumbles on, with seemingly increasing pressure from Parliament to re-open the bank. At stake are customers’ deposits believed to be in excess of Sh3 billion as well as securities and title deeds that were frozen because the bank could not operate. On the surface, it appears that Parliament is largely driven by public interest. However, closer scrutiny could reveal a personal interest. But even if one was to disregard the conflict of interest, Parliament as an institution is only charged with making laws and not the execution.  The CBK as the regulator has the sole mandate in the licensing, supervising and ensuring that the actors in the banking sector comply with the law. Parliament in threatening to censure the CBK governor for not reopening the Charterhouse Bank is overstepping its mandate. It cannot be that a body charged with making laws can go beyond and try to execute the very laws it has made.