By OTIATO GUGUYU
NAIROBI : The Central Bank of Kenya has said it will take disciplinary action against individuals if an investigation being conducted by Imperial Bank’s receiver reveals there was collusion with staff.
The Kenya Deposits Insurance Corporation is carrying out a forensic audit, which will be out in a week’s time, to reveal the extent of the financial problems at Imperial Bank.
“There may be blind spots and we will find out in-house why we missed this. If indeed there was anyone involved, there will be consequences,” CBK Governor Patrick Njoroge told journalists at a press conference at the Central Bank on Wednesday.
The CBK put Imperial Bank under receivership last week after its board brought to its attention malpractices at the bank.
Mr Njoroge confirmed that the bank was lending out money without following due procedures and was not reporting them in the bank’s balance sheet.
In the meantime, the CBK is planning reforms in its banking supervision department after failing to detect compliance at the closed Imperial Bank.
Dr Njoroge said the regulator wants to overhaul its ICT systems to keep up with fast-changing technology and change how its looks at bank balance sheets.