Wetangula blames Jubilee for crisis facing the banking sector

Ford Kenya leader Moses Wetangula has blamed the Jubilee government for the uncertainty facing the banking sector in the country.

Wetangula said the appointment of Dr. Patrick Njoroge Ngugi as Central Bank of Kenya Governor has spelt trouble for the sector putting his leadership module to question.

“Jubilee has focused on tribalism in their appointments instead of qualification and this is detrimental to the country’s growth,” said Wetangula.

“In the few months that Patrick Njoroge has been at the helm of CBK, several banks have collapsed including Dubai Bank, Chase Bank and Imperial Bank, and the future of National Bank of Kenya also in the balance.”

Njoroge, who was appointed to head CBK in June 2015, took over from Prof. Njuguna Ndung’u whose term ended in March last year.

The former advisor at the International Monetary Fund (IMF) has a Masters Degree in Economics and a PhD from Yales University.

Not everyone, however, shares in Wetangula’s opinion with many leaders, including President Uhuru Kenyatta, coming to the defence of Njoroge.

In his speech on Sunday, President Kenyatta expressed his support for the CBK Governor saying his move to clean up the mess that has dotted the banking sector is recommendable.

The Head of State reassured Kenyans that the country’s banking sector is stable and safe warning banks against defrauding depositors.

“Those who run banks will not be allowed to steal from depositors,” said the President, adding that: “bank owners who took massive loans and did not pay will be forced to refund depositors.”

Similar sentiments were expressed by Deputy President William Ruto who assured of government’s plans to streamline the financial sector in order to secure investments and create a fair and conducive environment for investment.

“Even as we do so, we will subject to the law those who use their positions to put the banks at risk and those who use the Internet or any other form of media to propagate and spread malicious rumours in the financial sector with the aim of causing unnecessary panic and anxiety,” Ruto said on Sunday.

@benjaminwafula