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No more banks will collapse in Kenya, says CBK Governor

21 October 2015, 18:30 Victor Tinto

Nairobi - No more banks will collapse in Kenya, Central Bank Governor Patrick Njoroge has said.

Following the collapse of Imperial Bank of Kenya last week, there has been talk of many others going down due to the country's current cash crunch but Njoroge says that it is not the case.

He also says that the issue with Imperial was that they offered loans against due procedure.

" The issue there is that we have evidence there were loans given out without following due process and we are investigating further," he stated.

He also continued that he felt that there would be stability in the country in the coming months and that the country is stable.

" We are fine and I urge Kenyans not to be lied to by malicious individuals," he added.

The management of Imperial Bank has been handed over to the Kenya Deposits Insurance Corporation KDIC.

CBK said KDIC would run the bank to the exclusion of the board and report to the regulator, within 12 months, on a possible resolution strategy.

The takeover, Central Bank said, had been ordered in the interest of debtors, creditors and members of the public.

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