Kenyans have been warned by lawyers of risks related to the adoption of electronic banking.
According to East African Standard the experts warned on Thursday that users of this type of technology stood a risk of losing money that cannot be recovered due to lack of legal framework.
The lawyers revealed that operations of electronic banking are not protected by the law and exposed banks and clients to huge financial risks.
“There is no law that deals with electronic banking. And because there is no law, the risks are very high,” Mr Njaramba Gichuki, a lawyer and a senior consultant in the Banking and Financial Services Division of the Manpower Services (K) Ltd said.
Gichuki said electronic banking regulations being installed by the Central Bank were not ‘law’ and should not be misconstrued to be safety nets.
“It is dangerous because you can lose money,” he said.
Gichuki was addressing chairmen and chief executives of banks and other financial institutions during the launch of a new banking and financial services division at the Manpower Services Company, a human resources, training and consultancy services firm in Nairobi.
“The law does not cover you on electronic banking frauds,” said Tim Muito an IT expert.