Envoy wants easy regional funds transfer

Dec 12, 2007

JAPHETH Getugi, the Kenyan High Commissioner, has said free flow of persons and capital remain high on the agenda to fast-track the East African Community politically and economically. Getugi also called for the establishment of cross-border institutions.

By Peter Kaujju

JAPHETH Getugi, the Kenyan High Commissioner, has said free flow of persons and capital remain high on the agenda to fast-track the East African Community politically and economically. Getugi also called for the establishment of cross-border institutions.

This, he explained, would add value to the community. “Fast-tracking of the East African Community is our message to everyone now.

“We need to see free movement of capital and people as well as ensuring that currencies are easily convertible,” Getugi said. Getugi was commissioning the operations of Kenya Commercial Bank (KCB) in Uganda.

KCB was one of the four new banks licensed by the central bank this year. “Ugandan businesspeople will no longer have to carry cash to transact business in Kenya.

“The same will apply to the Kenyan businesspeople because the bank runs a one account service.

“This applies to students as well. It will add value to the competition as well,” he added.

He said the way to go for East Africans was to market themselves as a region because of the strength and advantages of the bloc.

Peter Munyiri, the KCB chief executive officer, said they would open more branches in Kampala before moving to Mbarara.

“We intend to open about six branches in the first quarter of 2008. But by the closure of the year, we are looking at opening 14 across branches across the country,” Munyiri said.

He said KCB, which also operates in South Sudan, had embraced the regional approach that other institutions should emulate.

Because of increased competition, the entry of KCB and others is expected to lower interest rates which had been as high as 26% per annum.

increase competitionas its members with headquarters in Arusha, Tanzania.

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