Joy for banks as CBK opens clearing house in Kisii

Plans to open a Central Bank  of  Kenya clearing  house in Kisii are complete.

The project manager, Ann Omufuria said the unit will be housed at the Barclays Bank, Kisii branch in a collaboration between the two institutions.

This will be a relieve for banks in Kisii, Nyamira, Kilgoris, Migori and Homabay which have been incurring challenges getting the CBK services in the bank’s Kisumu branch.

Speaking  at Governor James Ongwae’s office during a courtesy  call, Ms Omufuria said that the bank will be officially  opened on January next year.  

“We are  going  to furnish  the house from June and it will be complete and ready in December,” said Ms Omufuria. 

Ms Omufuria said that the clearing house will  reduce  travelling  costs  and other  expenses  which the member financial institutions  were  incurring  moving  to Kisumu  to seek  services. 

Ms Omufuria  said that  the iniatitive  will  see the increase of customers and better services.

“As the CBK , we have improved  the platform,” she said.

Governor Ongwae  said that he had  earlier  requested   President  Uhuru Kenyatta  to allow for the opening of  a CBK branch or clearing house in Kisii.

Mr Ongwae  stated  that Kisii County  controls  about  60% of the money market in the South  Nyanza region.

“We support  the iniatitive  since it will be for the convenience of banks serving our people,” Mr Ongwae  said. 

There are over 25 banks and other financial institutions  operating in Kisii.

The governor noted that efficiency in banking  will improve  the capital  base,  reduce  operational  costs and contribute to  economic  growth.

CAPTION: CBK project manager, Ann Omufuria and govenor James Ongwae in his office when she paid him a courtesy call. PHOTO/Brighton Makori.