CBK urged to review its cash reserve policy to boost women-owned businessesDecember 10, 2019
NAIROBI, Kenya, Dec 10-The Central Bank of Kenya needs to review the cash reserve ratio it is holding to allow easy flow of money into the Kenyan economy.
This is according to Kenya National Chamber of Commerce and Industry Chairman Jimnah Mbaru who says the move will increase liquidity making it easy for women to access funding that will, in turn, boost their businesses.
Currently, CBK is holding about 5.25 percent of all the in the economy, which Mbaru says if reduced to 3 percent, will release more money into the economy.
Mbaru also underlined the need for entities to clear pending bills, as it is affecting many businesses negatively with cases of job loss and closure of businesses increasing.
“We know failure to pay these bills over the last four to five years has led to the closure of a lot of women-owned enterprises leading to loss of jobs and affecting families across the country,” he added.
He was speaking during the signing of a partnership with Stanbic Bank which will benefit women-businesses registered under the KNCCI.
On June 1st, President Uhuru Kenyatta directed all state ministries, departments and agencies to clear their pending bills which the parties failed to beat.
The Head of State said that pending payments have negatively affected many businesses, particularly those whose bulk of capital is now locked in non-payment, hence the need to clear them.
“To alleviate this situation, I hereby direct that all Accounting Officers pay and settle all pending payments that do not have audit queries, on or before 30th June 2019. Further, I direct the National Treasury to secure full compliance of this directive. I also call upon County Governments to follow suit,” he stated during this year’s Madaraka Day celebrations at the Narok stadium.
This however failed in which the Head of Public Service Joseph Kinyua set another deadline of November 30, 2019, for the county governments and State Departments that have not cleared their pending bills to do so.
A report by Genghis Capital revealed that pending bills stand at Sh400 billion while a treasury report shows that the government owes local traders about Sh29.3 billion as contractors say they could be running into hundreds of billions.