From: Leo Odera Omolo
Date: Sat, Nov 14, 2009 at 7:37 PM

Business Report By Leo Odera Omolo In Kisumu City.

COMMERCIAL Banks in Kenya are grappling with the recent spate of stage managed and faked robberies of their money while on inter-banks transfer transit.

The banks have lost close to Kshs 100 million cash money on transit, and what has emerged is that these massive theft of money in transit are stage managed.

More than a dozen of conspirators and suspects in the faked hold ups are currently facing prosecution before the courts.

After the well planned and elaborate schemes, involving bank staff, and crews of the security firms, whose security vans are hired to transfer the money, as well as unpatriotic police officers hired as escorts, only paltry amount out of millions stolen are recovered.

And now the commercial banks are up in arms, seeking to device new and safe methods of inter-banks money transfer in Kenya, which of late has become a high-risk business.

The banks want private security companies involved in cash transit business to introduce new high technique internal measures to curb money theft on transit.

The banks say theft assessment of the companies measures to stop the crime are inadequate, despite of persistent requests to have such measures modified to protect their money.

Through the Kenya Bankers Association ,the institution said at the weekend that they are content that the police have put in place the right benchmarks to ensure that cash in transit does not falls into the hands of criminals.

The Association has however challenged the security firms involved in the money transfer transaction business in the country to initiate the use of smoke system to the cash on transit, against robbery.

The KBA boss, John Munyela, said some of the CIT providers are yet to conform to the required standards for operating such sensitive business and aren’t doing their best to curb problem. The CIT companies have yet to tell the public what they have done internally to address the problem. Thus the problem lies with firms, not the police, the KBA boss said.

Munyela’s remarks follow the alarmingly rising theft of cash on transit, whereby CIT company staff have been suspected of complicity.

So far, close to Kshs 100 million has been stolen this year alone, while on transit. It has emerged that some of the security firms vehicles do not have tracking devices as required.

Some staff have also been getting prior information on the size of the amount of cash on transit, contrary to the laid down rules Governing the money transfer business.

“It is only the control manager in the security firms, and bank managers, who are supposed to know the amount of cash to be transferred from one bank to the other. It is shocking to learn that even junior staff get information”, said one consultant in the banking industry.

Following the series of incidents, a special police squad has been established to escort cash by the Central Bank of Kenya and other stakeholders. This was disclosed by the Commandant of the Administration police, the unit that is charged with the responsibility of providing armed security escort.

According to the Commandant, Mr. Kinuthia Mbugua. This will enable them to vet and know the police officers who will be involved in the business on a daily basis within a certain specified period of time.

“We agreed to come up with a special unit specifically for c ash-in-transit, because it is an essential service. The officers selected for this assignment will be specially trained and will be well equipped with the necessary protective gears”.

Thee officers will be selected on the basis of their track records and integrity”, Said Commandant Mbugua.

It has also been resolved that members of Kenya Security Industry Association [KSIA}, and the Administration Police, will be conducting a joint training and supervisory drilling for CIT operation at the Administration Police Training College at Embakassi in Nairobi.

Further supervision, tracking and monitoring of all CIT vehicles will be carried out on a regular basis. Mr. Mbugua said he is confident the new measure will curb theft of cash on transit.

In one of the ugliest incident, several policemen were shot and killed while traveling in the van transferring money from a bank in Molo Town, in the Rift Valley Province ,about 300 kilometers west of the capital, Nairobi .The CIT had its way blocked by another vehicle, a pick-up whose passengers sitting at the back opened fire with an AK 47 automatic assault rifles and killed policemen including a young police woman even before they could fire from their rifles.

Ends

leooderaomolo@yahoo.com

About the author; Leo Odera Omolo is a veteran Kenyan journalist now semi-retired, but still operating as a freelance writer based in the Western Kenya City of Kisumu. He can be reached via phone number 0722486181,0734509212 or landline Number 0572500827.His mail address is P’O.BOX 833, KISUMU.
– – –
Subject: ROBBERY PRONE COMMERCIAL BANKS IN KENYA SEEK NEW AND SAFE METHOD OF INTER-BANKS MONEY TRANSFER AFTER A SERIES OF STAGE MANAGED ARMED HOLD-UPS.