adminNAIROBI. — A Kenyan anti-corruption drive uncovered the equivalent of tens of millions of dollars in unexplained wealth when it retired old banknotes, the central bank said yesterday, adding much of the cash appeared to have been gained in “the criminal area”.
The East African nation has a diverse, fast-growing economy, but foreign investors have long complained of widespread graft and weak application of anti-money laundering laws.
On June 1, the central bank set a September 30 deadline for everyone to convert their old 1 000 shillings note, worth about $10, into new ones after it became the banknote of choice for criminals of all types in the East Africa region.
Those exchanging large amounts were required to explain how they acquired the cash. The move was designed to stop the flow of proceeds of crime, like corruption and counterfeiting of bank notes, through the financial sector.
Bank governor Patrick Njoroge said notes worth 7,4 billion shillings ($71,29 million) were not exchanged, rendering the cash invalid and hitting the suspected corrupt owners hard.
“These are people for the most part that maybe had some concerns in terms of going through the checks,” he told a news conference.
The money is equivalent to a quarter of the annual budget of the government’s top hospitals in the country, Njoroge said. — Reuters.
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