Tag Archives: Kenya’s Central Bank

Kenya banks fined over $78m corruption scandal


Kenya’s Central Bank has fined five commercial banks linked to an alleged $78m (£59m) corruption scandal involving the National Youth Service (NYS).

The missing funds were allegedly stolen in a scheme involving senior government officials and ghost suppliers.

Standard Chartered, Equity Bank, KCB Bank, Co-operative Bank and Diamond Trust Bank were collectively fined just under $4m.

They are accused of being conduits of fraudulent payments to suppliers of the NYS.

The NYS is an initiative by the government to train young people in life and business skills. It was part of President Uhuru Kenyatta’s plan to fix Kenya’s high youth unemployment.

BBC Africa Business’s Hudheifa Aden says Kenya’s director of public prosecution is expected to determine the criminal culpability of the accused banks.

NYS boss Richard Ndubai, who was arrested in May, is among 20 officials already facing charges over the scandal.

Advertisements