The National Assembly Departmental Committee on Finance and National Planning met with the Capital Markets Authority represented by the chairman, Mr. Ugas Sheikh- Mohamed and the Chief Executive Officer (CEO), Mr. Wyckliffe Shamiah for the ongoing public participation meetings by the Committee. 

The Authority informed the legislators that legal gaps notwithstanding, it had taken steps towards Anti-Money Laundering, Counter-Financing of Terrorism and Proliferation of Weapons of Mass Destruction compliance with Kenya’s Mutual Evaluation Report (MER) Requirements, local laws and international standards. Expressing support for the Bill, the Authority held that the 13 technical compliance deficiencies flagged out in the Mutual Evaluation Report require a tightened law to effectively combat these crimes. Later in the afternoon, it was the turn of the Kenya Bankers Association.

 Further, the Authority told the Members that they are in favour of retaining cash reporting limits at USD 10,000 or its equivalent in other currencies as opposed to the proposed threshold of USD15,000. They argued that Kenya being a cash economy and a transit hub for the East African Region, the proposed upper limit would pose a significant risk relating to illicit commerce. 

Members led by the Vice Chairperson, Hon. Langat (Ainamoi) who chaired the session, expressed concerns that the lower limit has continued to hamper business especially given that most banks have been adamant to move from the Kenya shillings one million cash withdrawal threshold despite regulation providing for US$ 10,000. 

They expressed concerns over the banking sector’s obduracy to adjust the one million Kenya shillings threshold to reflect the inflation rate against the dollar noting that stringent banking laws were affecting businesses especially in sectors where people trade in cash. Members told the Authority that there is need to review the law to the upper limit to encourage those outside the banking system such as traders in far flung areas where there are no banking facilities and herders, to bank their proceeds without fear of being victimized.