CBK to open currency hub in Kisii

The Central Bank of Kenya (CBK) will open a currency centre in Kisii ease the distribution of cash to financial institutions.

The currency unit will be opened in partnership with Barclays Bank of Kenya #ticker:BBK, which will act as an agent for CBK, officials have said.

The new unit will become the fourth currency centre after Nyeri, Nakuru and Meru on top of CBK main branches in Mombasa, Kisumu and Eldoret.

Barclays Bank said the partnership is expected to not only minimise theft of cash in transit but also reduce transport cost for the banks in the region — which relied on the Kisumu branch to feed them with currency.

This comes amid increased economic activity in Kisii, which saw it ranked the 15th largest county with a 2.1 per cent of Kenya’s gross domestic product in 2017. Nairobi had 21.7 per cent.

Branch Manager Ann Omufira said the project signals growth in Kisii County and called on support from the county leadership.

“This is indeed laudable. Through this CBK centre, banks will be able to transport money at the close of business every day within minimum distance,” she said when the officials paid a courtesy call on Governor James Ongwae’s office yesterday, adding that the currency centre would serve Homa Bay, Nyamira, Bomet, Narok and Migori.

Mr Ongwae said the move is laudable and puts Kisii at a strategic place in Nyanza region.

“Kisii controls 60 percent of the money market in Nyanza region. We are glad that a request I made two years ago by writing to the governor of the CBK has finally come to be fulfilled,” said Mr Ongwae.

There are more than 25 financial institutions in Kisii and the hub would come in handy and ease banking activities.

“Kisii is a cash-rich area and this centre will mean bringing services closer home. It is all about devolving services to reach the targeted groups,” he added.

Currently, banks in the region deal with the CBK Kisumu branch. This is risky because there have been cases in which money in transit has been stolen, raising questions on how to protect banks particularly those that are in areas where there are no CBK units.

The facility will also have other benefits such as issuing clean notes to customers, improving the quality of currency in circulation in the region.