The Central Bank of Kenya (CBK) has revealed it has no direct Constitutional mandate to dictate the opening of numerous bank accounts, most of which are unauthorised, by county governments.
While appearing before the Senate Standing Committee on Devolution and Intergovernmental Relations on Thursday, July 24, CBK Governor Kamau Thugge disclosed that the institution's hands were tied despite it being the central regulator for banks across the country.
Thugge in turn recommended the upholding of the law and strengthening of current legal frameworks to ensure compliance. "The Standing Committee on Devolution and Intergovernmental Relations, led by the Chairperson Sen.
Mohamed Abbas, met with the Governor of the Central Bank of Kenya, Dr Kamau Thugge, to deliberate on the large number of commercial bank accounts operated by the county governments," the Senate stated.
