CBK to respond to suit by businessman Kobia

In Summary

• In the case Kobia says his constitutional right to privacy and property is likely to be infringed unless the court intervenes. 

• He wants the court to allow him to access his funds and to prevent CBK from closing his bank accounts. 

CBK Headquarters
CBK Headquarters
Image: FILE

The Central Bank of Kenya has been given 21 days to respond to case challenging regulations on cash transactions.

The case was filed by businessman Paul Kobia. The new regulations being challenged require full disclosure and proof of the source of funds by customers prior to crediting their bank accounts. 

 

Yesterday when the matter came up before judge Wilfrida Okwany parties agreed that the CBK be given 21 days to reply and Kobia be given 7 days to file any further affidavit if need be.

 In the case Kobia says his constitutional right to privacy and property is likely to be infringed unless the court intervenes. 

He wants the court to allow him to access his funds and to prevent CBK from closing his bank accounts. 

Kobia says the rules will adversely affect foreign remittances which will, in turn, slow down economic growth. 

The businessman claims the regulations have adversely affected banks by scaring away potential investors. 

Kobia says in a letter dated December 14 that Barclays Bank of Kenya threatened to close his account because of CBK’s "unreasonable regulations".

Barclays had written to the businessman informing him that they had decided to stop providing him with banking services and they would close his bank accounts.