Wednesday, April 19, 2006

Politicians stalls bank reform process

According to Jaindi Kisero, the East African editor, the donor-funded restructuring of Kenyan government banks has ground to a halt and the consultants hired to advise the process remain idle.

Government influence and investment was supposed to be reduced/removed at four state-influenced commercial banks, namely, the National Bank of Kenya, the Kenya Commercial Bank, Consolidated Bank of Kenya and the Industrial Development Bank in the exercise which began in 2003.

The sticking point is that directors of these banks were to be drawn from the private sector and not be political appointees as was the case in the past. He also argues that any donor projects that conflict with interests of the Kenyan political class are doomed to fail.

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