The classic practice of stashing money under the mattress could be making a comeback in Kenya, and it’s all thanks to the Finance Bill 2024.
In Summary:
● Bank CEOs have come out to warn President Ruto against proposed transactional charges in the Finance Bill 2024.
● Kenyans might be on the verge of bringing back “matress banking” if the Finance Bill 2024 passes.
The Finance Bill 2024, apparently designed to “bolster” the economy and “streamline” financial processes includes proposed taxes that have left some Kenyans opting for cash to cash transactions & avoiding mobile cash transfer.
Bank CEOs, who are often on the same page with government, have now come out with a warning to President Ruto about the potential return of “mattress banking.”
Even Bankers Are Concerned!
This would lead to a major decline in the growth of financial institutions. A loss perhaps, for the oppressing bureaucrats but also a long term loss for the common mwananchi.
NCBA Bank CEO, John Gachora, has strongly critisized the proposed taxes in the Financial Bill 2024.
He focuses on the Kenya Kwanza administration’s plan to impose new transaction charges labelling them as ‘unnecessary taxation’.
According to Equity Bank CEO, James Mwangi “matress banking” will likely return the moment people feel the need to abandon e-money transactions for hard cash.
The banking industry is clearly concerned about the current trajectory the Kenyan economy is facing. Meanwhile, President Ruto is all smiles assuring Kenyans that the future is looking bright under his leadership.
In an ideal economy, financial institutions are created to help link people who need funds with those who can lend or offer investment opportunities. Credit unions, insurance companies, brokerage firms & of course banks; are crucial in the growth of an economy.
Pesa Kwa Matress!
In the age of digital innovation and cashless transactions, the thought of resorting to mattress banking seems ironical. However, necessity breeds creativity.
As the debate goes on, one thing is clear: the mattress is soon become more than just a place to lay your head; it could be your newly preferred bank. Rudi Nyumbani.
