Spate of Bank Robberies Raises Alarm in the Kenyan Capital

Bank robberies have become so common here that locals have taken to calling the Kenyan capital “Nai-robbery.”

Although the exact number of robberies is unknown, some industry insiders estimate that, in the last quarter of 1998, at least one bank a week was held up in this city of 2 million. Two banks were hit last month, and about $7,000 was taken Wednesday from a savings institution.

Thieves reportedly have gotten away with millions of dollars, often without firing a shot. Few robbers have been captured, and the stolen money is rarely recovered. Insurance companies have been left to foot the bill.

Kenyan banks lost more than $8.3 million last year, according to local newspaper reports. Police say there was a dramatic increase in the number of bank robberies during 1998 compared with previous years, although they could not provide statistics.

“There was a time when we didn’t have bank robberies at all,” police spokesman Kingori Mwangi said.

“The trend has been worrying,” added Isaac Awuondo, vice chairman of the Kenya Bankers Assn. “We have a security team, which holds regular meetings to discuss the issue and assess the situation.”

The heists often are conducted boldly and with ease, despite the fact that most banks are wired to police headquarters or a security firm. All financial institutions have at least one baton-wielding guard; private security officers are not allowed to pack guns.

There have been many complaints that police arrive too late to nab the perpetrators. Some Nairobians suspect involvement of the city’s security forces, others of bank employees.

“The robberies are well executed,” banker Michael Karanja said. “They strike very early. They sometimes enter with employees or disguised as cleaners. They seem to do their homework well. They often know who are the custodians with the keys.”

In October, armed robbers forced their way into the downtown Victoria Commercial Bank Ltd. as an employee, holding the vault keys, was opening for the day. The thieves reportedly made off with nearly $370,000. Police said the raid was staged by “known hard-core criminals,” five of whom were arrested. One of the suspects was reported to have been a former police officer.

Five days later, another bank was hit; $60,000 was stolen, and a police officer was shot to death.

Mwangi, the police spokesman, discounted claims of police complicity in recent heists and blamed his force’s slow response on a lack of resources, in particular a shortage of high-speed patrol cars.

Mwangi suggested collusion between the thieves and former bank employees. Banks have laid off hundreds of workers in recent months during widespread retrenchment.

“One or two of these may have a grudge to sort out with the bank,” he said. “We are not saying for sure that these are the ones. But you can almost see a similarity between the time the banks started retrenching and when the robberies started.”

Mwangi said his department was seeking ways in which banks might be able to help finance police operations, for instance by buying new vehicles.

Awuondo, the bank association official, said it was doubtful that the group will agree to this proposition because “that’s why we pay taxes.”

However, the association has been sponsoring seminars to educate senior police officials who deal with banks. The group also is encouraging members to observe at least the minimum security standards, such as making access to cash registers and safes difficult by using high counters with thick security screens; installing turnstiles or security doors that lock automatically when the alarm is triggered; delegating control of vault access to more than one employee; and properly training and screening guards before they are hired.

The Assn. of Kenya Insurers is upset by the frequent robberies.

“If the trend continues,” it said in a recent statement, “then we shall increase the premiums or even stop providing [coverage] for such events.”