Central bank of Kenya has fined five banks a total of 392.5 million shillings for handling illegal transactions with the national youth service.

In the first phase of the investigations, CBK prioritised banks that handled the largest flows. The banks penalised include standard chartered bank Kenya, equity bank Kenya, KCB bank, co?operative bank of Kenya, and diamond trust bank Kenya.

The penalty was due to the failure to report large cash transactions, failure to undertake adequate customer due diligence, lack of supporting documentation for large transactions, and lapses in the reporting of suspicious transaction reports  to the financial reporting centre.