Over the weekend, hacktivists conducted distributed denial-of-service DDoS attacks on the websites of four International banks including the Central Bank of Kenya (CBK).
The other banks include National Bank of Panama, Central Bank of Bosnia and Herzegovina and Maldives Monetary Authority.
According to Hacknews, hacktivists only referred to as Anonymous and Ghost Squad began conducting cyber attacks on banking websites worldwide over a week ago.
This particular hack is said to have been executed by Ghost Squad on Saturday morning. All of the sites are now back online, an event that might go unnoticed to most people.
Screenshot showing all four banks were down after the attack
The National Bank of Panama was of special interest to the hackers due to the recently leaked documents known as Panama Papers.
The operation by hacktivists is against banks and financial institutions around the world. The hacktivists believe banks are controlling the world’s economy, promoting and hiding corruption at governmental and private level.
Seventeen (17) financial institutions are currently under liquidation in Kenya.
Liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations as and when they come due. The company’s operations are brought to an end, and its assets are divided up among creditors and shareholders.
The following banks are currently under liquidation in Kenya, some of which payments to customers and shareholders is underway through the Kenya Deposit Insurance Corporation.
Post Bank Credit Ltd.
20th May 1993
Meridien BIAO Ltd.
15th April 1996
Ari Bank Corporation Ltd.
5th December 1997
Reliance Bank Ltd.
12th September 2000
Trade Bank Ltd.
18th August 1993
Thabiti Finance Co. Ltd.
19th December 1994
Fortune Finance Co. Ltd.
14th September 2000
Daima Bank Ltd.
13th June 2005
Dubai Bank Kenya Ltd.
24th August 2015
Prudential Building Society
18th January 2005
Middle African Finance Ltd.
20th August 1993
Pan African Bank Ltd.
18th August 1994
Pan African Credit & Finance Ltd.
18th August 1994
Kenya Finance Bank Ltd.
29th October 1996
Prudential Bank Ltd.
5th May 2000
Trust Bank Ltd.
15th August 2001
Euro Bank Ltd.
21st February 2003
Stakeholders can follow up with the Kenya Deposit Insurance Corporation which is located at 1st Floor, CBK Pension House, Harambee Avenue, Nairobi, Kenya. Their website is http://www.depositinsurance.go.ke/.
Those with questions can call the KDIC on Tel. No. 0770 887992. Customers can also contact KDIC on email: firstname.lastname@example.org for more information.
3 banks have been put under receivership over the last 2 years. It’s safe to say that banking in Kenya has become a high risk venture. How then can you choose the right bank?
CBK classifies banks into tiers. Tier 1 is made up of the big old banks. These will ALMOST certainly never go under in a similar way as Chase or Imperial. They have millions of clients and hundreds of billions in assets. Some have government participation while others are locally and foreign owned.
6 banks make up the top tier, and collectively control 49.9% of the market. The banks are as follows-:
16 other banks make up Tier 2, and collectively control 41.7% of the market. The most stable of Tier 2 being the following banks
Diamond Trust Bank
Bank of Africa
The last tier, Tier 3 is made up of 21 small banks that control 8.4% of the market. The following diagram provides a clear picture of the classification.
In June 2015, CfC Stanbic lost top-tier bank classification to CBA after dropping its market share by 0.5 percentage points to 4.92 per cent.
Changes in market share in the banking sector are mainly occasioned by growth in customer deposits as banks deployed various strategies for deposits mobilisation.
CBK has previously put over 3 banks under the Kenya Deposit Insurance Corporation (KDIC) receivership which include the recently troubled Imperial Bank, Dubai Bank and now recently Chase Bank.
The Central Bank of Kenya (CBK) has issued new guidelines for mandatory information that Kenyans will be required to provide when handling large cash banking transactions, equal to or exceeding USD 10,000 or its equivalent in Kenya Shillings or any other currency.
These guidelines take effect immediately and customers of various banks in Kenya will be required to fill a declaration form to provide the following details:
Why is the large cash deposit or withdrawal necessary?
Why can’t the cash deposit or withdrawal be made through electronic means?
Where will the money be taken after it leaves the bank premises?
What is the money going to be used for?
Who will be the direct and indirect beneficiaries of the money?
What is the full identity of the intended beneficiaries of the money?
What is the source of the money being deposited or withdrawn over the counter?
According to CBK, the new regulations are designed to encourage the use of electronic payments and reduce the inherent risks involved with cash transactions. Electronic payments are beneficial to customers as they reduce losses due to fraud and theft.
To stay on the safe side of the regulations, banks in Kenya are offering alternate payment solutions such as