The Central Bank of Kenya will set up a money clearing centre in Kisii town by January.
Governor James Ongwae said the centre will significantly cut costs incurred by the more than 25 banks in Kisiii town who collect their cash stocks from CBK's Kisumu branch on a daily basis.
“I had written to the government requesting the center and its establishment is a prayer answered. We hope it will go a long way to help not just the banks but also boost the economy,,” said Ongwae.
The governor said this when he hosted Kisii Barclays Bank branch officials. The officials briefed him on the development.
Regional head Ann Mufira said the money centre will be housed at the ground and second floor of the Barclays Kisii branch.
Work at the site are due to begin in June and end in December ahead of the flagging of operations in January next year, Mufira said.
Ongwae said Kisii region accounts for the more than 60 percent of money circulation in Nyanza region and thus the need for the money clearing center.
“It is a sigh of relief for our banks who have often been forced to use vans to restock cash from Kisumu,” he said.
Currently CBK’s Kisumu branch serves the whole of western Kenya.
