By Cyrus Ombati
Central Bank of Kenya has opened a new cash centre in Nyeri town as part of measures to address cases of theft of Cash In Transit (CIT).
The centre, located on Kenya Commercial Bank Building, will help banks in the region deliver cash there daily instead of Nairobi.
According to a memo from Kenya Bankers Association to all banks, normal currency operation requirements as presently obtained at the Central Bank remain applicable.
"We are pleased to advise that CBK in liaison with KBA has finalised the establishment of the first Cash Centre in Nyeri. Member banks that have signaled their intention to use the centre may now do so," said the memo signed by KBA Chief John Wanyela.
The letter dated December 31, last year says the move is also aimed at easing movement of CIT, cutting costs, lowering risks of movement and improving efficiency in management of cash apart from promoting clean note policy.
Yesterday, sources at CBK headquarters said they are in the process of opening up more centres in Nakuru, Meru and Kisii.
A team of top CBK officials visited the area last month to view the premise where the centre will be opened up and work on logistics
The move will reduce daily transportation of cash from banks in the towns to CBK headquarters in Nairobi and minimise risks of theft. All banks apart from those near places where CBK offices are like Mombasa, Kisumu and Eldoret have been delivering cash to Nairobi daily for audit, an issue authorities now view as risky.
"With the cases of theft of cash in transit on the rise, it is prudent that we take such measures," said a senior CBK official who sought anonymity.
Profiling personnel
The regulator has also demanded that all security companies involved in the CIT business know their personnel by profiling them.
"Before they are deployed to the business, the companies will be required to thoroughly profile them as a way of knowing their background," added our source.
The move comes in the wake of the theft of more than Sh50 million that was on transit by a security firm last year.
A CBK projection report showed such cases might increase in the future hence the need to minimise the movement of cash on long distances and put other benchmarks to address the problem.
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The report showed a gradual increase in theft of cash in transit detailing some of the cases that were never reported by the media in the past year alone.
Stakeholders from police, private security industry and CBK were slated to hold sessions on how they will curb the problem.