Reporting of Suspicious Transactions

The CBK has released Banking Circulars directing all banks, non bank financial institutions, mortgage financial institutions and forex bureaus to forward to the Financial Reporting Centre (FRC) all Suspicious Transactions Reports…….

For the downloads of the whole circulars, check out here….http://www.centralbank.go.ke/index.php/news/239-reporting-of-suspicious-transactions

 

The Salary Increment Comedy

“Haki yetu! Haki yetu! Haki yetu!”

In the recent past we have witnessed many of our public sector employees chanting this very common slogan on our television screens. It all seems to be a well coordinated comedy with the Finance Minister as the steering of the comedy.

I like the guts of the main actors in this small comedy; first we have the Minister for Education (Hon. Mutual kilonzo); who threatens to fire the teachers if they do not go back to their classrooms and do what they went to TTCs and universities to learn to do. The teachers led by their hero Emperor Sossion give the threats a cold shoulder and go on with the strike for three good academic weeks.

In the first scene of the comedy, the teachers win as the Minister “swallows his pride” and gives them whatever they demanded; and the package comes with an apology for inconvenience and the firing threat. This however is not cost free since the academic term had to be pushed forward. In addition, the steering has to look for other tax manipulation tactics to raise the money to pay the teachers with.

Before the first scene is over, another different scene is juxtaposed to it and it continues to Part 2 as “the doctors` strike”. The main actor here – Minister for Health (Hon. Anyang Nyong`o) – is less friendly than the first one; for him words do not threaten enough; he goes ahead and publishes the firing of the current doctors in the newspapers and advertises for their jobs.

However as fate could have it, his threats could end up simply as resounding cymbals since the doctors wishes are listened to and part of their bargain got.

The third part of the comedy, or should I call it scene 3? …has the most exciting pick of the comedy. Honorable Members of Parliament, probably in a bid to revenge for their fellow members whose efforts were overcome by the power of the citizens; “hide” themselves in Parliament at night and pass a bill that grants them hefty checks as a send-off package once their current term is over. Ksh. 2 Billion is the exact figure..

In normal circumstances, the honorable members are known to boycott important sessions when development bills and other important matters are being discussed. Bills take for as long as years to get passed in parliament; some even going beyond the preset deadlines; but this one..???

The public is not happy with the selfish way in which the members are dealing with their hard-earned money in form of taxes and an uproar results. In the print, audio and visual media, the selfish act is criticized and termed as “The Height of Impunity in Our Parliament”.  Everyone in the country listens, reads and watches this news in disbelief!

What has gotten into our MPs` heads really? …everybody wonders! This third scene of our comedy is currently playing in our Kenyan media…run and watch, listen and read about it there for free….

CBK Weekly Bulletin

September 28, 2012

Highlights

The money market was liquid during the week ending September 26, 2012. The Central Bank sterilized the excess liquidity in the money market by mopping Ksh 12.57 billion through repo securities and Ksh 7.2 billion in term auction deposits against maturities of repo and term auction deposits securities held by commercial banks of Ksh 18.5 billion and Ksh 8.2 billion, respectively.

The average interbank rate increased to 7.19 percent during the week ending September 26, 2012 compared with 6.57 percent in the previous week.

The Kenya Shilling depicted mixed results against major international currencies in the week ending September 27, 2012, depreciating marginally against the US dollar, the Pound Sterling and the Japanese Yen but appreciating against the Euro.

The usable official foreign exchange reserves held by the Central Bank decreased from US dollar 5,190 million (equivalent to 4.13 months of import cover) as at September 20, 2012 to US dollar 5,163 million (equivalent to 4.11 months of import cover) in the week ending September 27, 2012.

The Government offered for sale Treasury bills worth Ksh 8.0 billion during the week ending September 28, 2012. A total of Ksh 3.4 billion was accepted out of Ksh 4.9 billion bids received.

Gross Government domestic debt increased by Ksh 57.0 billion to Ksh 915.8 billion on September 21, 2012, from Ksh 858.8 billion at the end of June 2012. During the week under review, gross government domestic debt decreased by Ksh 5.4 billion mainly on account of Treasury bonds.

Stock market recorded a strong performance in the week ending September 27, 2012, with gains in all market indicators except for the bonds market. Equities market was robust with all share indices registering gains. The NSE 20 Share Index gained 46.01 points; NASI was up 0.61 points, FTSE NSE 15 Index 0.10 points and FTSE NSE 25, 0.14 points. Supply of shares edged up 2.4 percent while market capitalization improved by 70 basis points.

The bonds market was inactive, falling by almost a third of the turnover recorded in the previous week.