Banks ordered to conduct external audits on insider loans

Equity group holding Chief Executive Dr. James Mwangi has revealed that Central Bank ordered external auditors in the 42 Kenyan banks to audit all loans advanced to insiders in the banking sectors.

Mwangi who was speaking when he announced the bank’s trading results for the first quarter of 2016 said his bank welcomed the move by Central Bank governor because it would improve corporate governance in the sector and avoid scenes that have been witnessed in the last few months where bank’s have fallen under the weight of uncontrolled insider lending, fraud and poor liquidity.