Kenyan Town With no Commercial Bank Seeks Govt Intervention

CBK Governor Patrick Njoroge speaking at the MPC May Conference
  • Residents of a town in western part of the country have called on the government to intervene and help address a prevailing financial infrastructure crisis.

    Kendu Bay, a town in Homa Bay County in the larger Nyanza Province has no single commercial bank.

    The residents have petitioned the government and the private sector to consider setting up banks in the area, stating that the town had grown into a commercial hub.

    Even as the money circulation in the town increased over time, the residents say that they have to rely on mobile banking platforms to access banking services.

    They, however, argue that the mobile and online banking services do not guarantee security of their money.

    CBK Governor Patrick Njoroge during the May MPC Conference. PHOTO: TWITTER

    “Most times we access our money through the mobile banking platforms. Other people opt to take the money home with them,” one resident stated.

    In addition, the resident stated that the prevailing situation has led to an increase in insecurity in the town as rogue individuals break into houses in search of money kept at home.

    The residents disclosed that they are forced to incur extra costs to secure their money, explaining that they have to travel to Homa Bay town, 32 kms away to access banking services.

    The residents now want the county government to partner with commercial banks and set up banking institutions in the town.

    “There is need for the government, even if it is at the county level, to put up buildings where banks and other financial institutions will set up shop,” another resident added.

    He added that the financial institutions would not only be used to safely keep the money, but also issue loans to the youth who have joined table banking groups.

    The town’s economic growth is attributed to fishing activities, increased trade and tourism in the area.

    A trader displays her farm produce from Kimira-Oluch irrigation scheme during World Food Day celebrations in Kendu Bay, Homa Bay County on October 16, 2019
    A trader displays her farm produce from Kimira-Oluch irrigation scheme during World Food Day celebrations in Kendu Bay, Homa Bay County on October 16, 2019
    The Star

     

  • Source: KENYAGIST.COM