The Central Bank of Kenya has fined three local banks Sh. 3 million for failing to report suspicious transactions relating to the Sh791 million NYS scam.
Governor Patrick Njoroge, also forced the sacking of nine top managers of Family Bank of Kenya where the bulk of the money stolen from National Youth Service (NYS) was paid to Ms Josephine Kabura, the businesswoman at the centre of the scandal.
The CBK is also vetting managers of Faulu Microfinance who were involved in the transactions involving the NYS loot.
“We established that there have been cases of flouting prudential guidelines and we took enforcement action. We levied a maximum penalty to Family Bank. We fined them Sh1 million. We also required revetting of nine officers who were responsible since there was culpability on their part,” he said.
Dr Njoroge said the findings at Family Bank, Sidian Bank and Faulu were presented to FRC who are allowed by law to take up any criminal charges against the officers found culpable.
“They are allowed to take up criminal charges. They have corresponding responsibility which is in their domain,” he said.