The Central Bank of Kenya (CBK) has transferred KSh 5.5 Billion to the Government’s Consolidated Fund as a distribution from CBK’s General Reserve Fund (GRF).
With an exceptional distribution of KSh 5 Billion on February 17th, 2021, the total distribution from the monetary authority’s General Reserve Fund 2020/21 financial accounts now amounts to KSh 10.5 Billion.
This distribution is in accordance with Sections 9 and 51 of the law relating to the treatment of the Government’s fiscal agent’s net annual profits and follows approval by its Board.
CBK makes transfer to National Treasury’s Account
The transfer was executed by crediting the Ministry of Finance’s Deposit Account at the monetary authority.
The CBK Board authorized this transfer, considering its financial needs with the objective of ensuring the monetary authority to deliver on its mandate in an increasingly uncertain economic environment.
In particular, GRF resources are needed for modernizing CBK’s facilities and infrastructure in keeping with its mandate.
Completion of the identified projects will play an important role in CBK’s long-term health and viability, strengthening its operations in line with its responsibilities and changes in the financial sector.
Kenya’s monetary authority is mandated to issue new generation currency, with an expected cost of KSh 15 Billion.
To keep up with the significant growth of the financial sector and ensure that it can discharge its functions even in times of stress while sustaining its financial independence, the monetary authority needs to increase its paid-up capital in the period ahead towards its authorized capital of KSh50 Billion.
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