Kenya's Central Bank Chief Warns Again On Crypto Risks

Central Bank of Kenya (CBK) is now in line with other banks in blacklisting digital currencies and warns customers and banks dealing with it.

AccessTimeIconApr 13, 2018 at 12:30 p.m. UTC
Updated Sep 13, 2021 at 7:49 a.m. UTC
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The Central Bank of Kenya (CBK) is once again seeking to dissuade domestic businesses from dealing in cryptocurrencies.

Following what the institution called massive price volatility in the sector, the national bank has issued a circular to financial institutions on the subject, a development revealed in an appearance by the governor of the CBK before the nation's parliament, domestic news outlets report.

In statements, Patrick Njoroge, the governor of the national bank, sought to expand on past public statements, including a notable one in November in which he warned investors similarly.

He said this week:

"There are risks associated with cryptocurrency particularly on consumer protection, fraud, hacking and loss of data and they are prone to be used as pyramid schemes."

Njoroge went on to allege that the features of cryptocurrencies make them vulnerable to money laundering and terrorist financing, while mentioning that emerging technologies are broadly prone to risks.

As such, Njoroge's comments build on the public statements from senior African officials. Countries such as Zimbabwe and Namibia , for example, have sought to brand the technology as illegal, while Zimbabwe's central bank said in November that cryptocurrency "is not actually legal."

Kenyan map via Shutterstock

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