Banks Implicated in Sh9 Billion NYS Scandal to be Investigated

Central Bank of Kenya (CBK) Governor Patrick Njoroge has warned banks directly linked to the Sh9 billion scandal at the National Youth Service (NYS) that they will face the law.

Speaking during a press briefing on Tuesday, Njoroge said CBK is working hand in hand with other State agencies to ensure lenders who violated the law are brought to book.

“The CBK is working closely with the Director of Criminal Investigations (DCI) and other investigating agencies on this case."

“We do have that responsibility to supervise/ oversee banks and their compliance to the tenets of various legislations,” he said.

He expressed dismay over the loss of public trust in the CBK following the scandal, but assured Kenyans that they will do all they can to recover the stolen funds.

“We have provided banks with rules regarding Suspicious Transaction Reports and how to flag large frequent unusual transactions. How else could you make a mistake of things you are already aware of?” he posed.

"And as you know, there are two directions that we are going. We are probing recipients with a view to recover the resources as quickly as possible and banks and other entities that may have been involved,” Njoroge said.

More than 30 suspects among them Youth Principal Secretary Lilian Mbogo Omollo and NYS Director General Richard Ndubai are set to face various charges in connection to the scam.