The Central Bank of Kenya (CBK), the country’s premier financial regulator, has moved swiftly to address mounting concerns about the banking sector’s stability. This response comes amid a flurry of unverified social media reports suggesting liquidity crisis in Kenya’s financial system.
In a statement, the CBK categorically dismissed these claims as unfounded. The bank’s official response emphasized:
“CBK has not issued any press release, or other information with regard to the operation of the banking sector or any other element of its mandate. We thus advise the public to disregard any such purported information. The intent behind these malicious attempts is usually to induce panic, leading to action which may destabilise the market. We wish to emphasise that creating or circulating such information is in contravention of several laws including the Computer Misuse and Cybercrimes Act, and will lead to criminal prosecutions.”
Press release – Caution Against False Informationhttps://t.co/BBZMjFndJ5 pic.twitter.com/Wr1w5Sjfv2
— Central Bank of Kenya (@CBKKenya) November 13, 2024
Also Read: KRA Wants to Know Your Phone Number: How to Verify on iTax
Banking Sector Solidarity
The Kenya Bankers Association (KBA), the banking industry’s representative body, has aligned with CBK’s position, reinforcing confidence in the sector’s stability.
The KBA characterized the circulating reports as deliberate misinformation and urged the public to rely only on official communications channels for banking sector updates.
Beware of False Information
— Kenya Bankers Association (KBA) (@KenyaBankers) November 13, 2024
The Central Bank of Kenya (CBK) has issued a caution to the public about attempts to spread false information regarding the stability of the banking sector.
The banking sector remains strong, well-capitalized, and fully operational. The industry… pic.twitter.com/LMH4CtK6yi
Legal Implications
The CBK’s statement notably highlighted the serious legal consequences of spreading false financial information.
Under the Computer Misuse and Cybercrimes Act, individuals found guilty of disseminating false financial information could face criminal charges, underlining the authorities’ commitment to maintaining stability in the financial sector.
Social Media Claims Under Scrutiny
Recent days have seen an unprecedented surge in social media posts and messaging claiming that Kenyan banks are facing severe liquidity constraints.
These reports alleged that there was insufficient capital circulation in the economy, raising concerns among some bank customers and investors about the overall health of the banking sector.
