Central Bank of Kenya (CBK) has been faulted for delays in winding up the Kenya School of Monetary Studies (KSMS).
The Auditor-General said that for the last six years, the KSMS has existed without a functional Board of Directors and has been proposed for winding up. This dissolution of KSMS was gazetted on 24th April 2020.
Poor governance and internal controls at KSMS
This was in an effort to address concerns regarding governance and internal controls at KSMS and to align its objectives and financial reporting framework with that of the Central Bank of Kenya
However, at the date of the Audit report of the Auditor General on the Central Bank of Kenya for the year ended 30th June 2021, KSMS had not been dissolved.
“Consequently, it is critical that CBK Management follows up and expedites the conclusion of the dissolution process,” says Nancy Gathungu, the Auditor-General.
CBK has failed to pick the second Deputy Governor
Ms Gathungu also points out that the Bank is yet to appoint a second Deputy Governor. This is according to the CBK Act Cap 491 Section 13B(1) which states that there shall be two Deputy Governors who shall be appointed by the President through a process that gets approval from parliament. Mrs Sheila M’ Mbijiwe is the only Deputy Governor.
The law also requires that the Bank has 8 Non-Executive Directors of the Board. But during the period under review, CBK had only 4 Non-Executive Directors namely Ravi Ruparel, Nelius Kariuki, Samson Cherutich and Rachel Dzombo.
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