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Sunday, November 29, 1998 Published at 07:10 GMT World: Africa Anger at prominent bank debtors ![]() Bad bank debts are blamed for Nairobi's recent financial turmoil It has been revealed that the Kenyan President's son and several cabinet ministers are among debtors who owe large sums to troubled banks. President Moi's son Raymond, and senior cabinet minister Nicholas Biwott have been named as have six other cabinet ministers. A number of Kenyan banks have failed recently and the level of bad debt carried by the banks has been blamed for recent turmoil in the financial sector. Opposition MPs and churchmen have demanded the resignations of public figures who owe the National Bank of Kenya, one of the country's largest commercial banks, and other banks millions of shillings.
Two lists released by the Central Bank of Kenya reveal the details of the bad debts owed by the ministers, MPs and senior civil servants - often through companies they own. 'Thieves paradise' Opposition leader Mwai Kibaki said the NBK has been a "thieves paradise" and called for an inquiry into the operations of all banking institutions. "The government has been using this bank to give money to its supporters and friends," he said. Prominent church leader Rev Timothy Njoya described the revelations as "abhorrent and nauseating'' saying the officials were responsible for the famine, the corruption and general poverty in the country.
Raymond Moi and an associate, through their company Simba Airlines, owe Heritage Bank nearly $1m. Mr Biwott, the minister for regional co-operation, owes Trade Bank nearly $4m. The banks have taken the cases to court to recover the debts. A week ago the Kenyan government agreed to inject $33m into the NBK following panic withdrawals. The Finance Minister, Simeon Nyachae, said NBK customers withdrew more than $26m in a week. |
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