Customers are seen outside the banking hall at the Kenya Commercial Bank, Kencom branch in Nairobi

Kenyan central bank fines five banks a total of $3.89 mln

NAIROBI (Reuters) - Kenya's central bank on Wednesday said it had fined five commercial banks a total of 392.5 million shillings ($3.89 million) in connection with the theft of funds at the National Youth Agency, a government body said.

Dozens of senior government officials and business people were charged in May with various charges related to the theft of nearly $100 million from the youth agency, NYS, marking a new effort to crack down on widespread graft.

The five banks are Standard Chartered Kenya, Equity, Diamond Trust, Co-operative Bank and KCB Group, the central bank said.

The central bank said it had discussed its findings with all the five banks and they had pledged to ensure compliance with all laws in the future and to draw up plans for sealing gaps that were identified.

It accused them of failing to report large transactions, failing to undertake proper due diligence on customers, approving large transactions without proper documents and failing to report suspicious transactions.

All the banks had received a total of more than 3 billion shillings from the NYS on behalf of their customers, the central bank said.

It said the findings of its investigations had been passed onto criminal detectives to assess whether they would bring any charges. More banks will also be investigated, the central bank added.

($1 = 100.8000 Kenyan shillings)

(Reporting by Duncan Miriri; Editing by Ingrid Melander and Matthew Mpoke Bigg)

First Published: 2018-09-12 15:05:42
Updated 2018-09-12 16:13:00

© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.