NAIROBI, October 3 – The Central Bank of Kenya has reported a profit of Sh8.99 billion for the 12 months ending June 30, against a loss of Sh386 million the previous year.
A statement on the bank’s website attributed the improvement to a substantial reduction in foreign exchange translation losses which dropped to Sh1.3 billion in the year from Sh9.8 billion the previous year.
The rise in net income also came from foreign interest earnings, which was Sh1.99 billion, a 24 percent rise from a year earlier.
“Operating expenses were lower by Sh441 million (eight percent) mainly due to currency printing expenses which were lower by 68 percent owing to the shifting of planned deliveries of banknotes for 20007/2008 to year 2008/2009,’’the bank said.
Savings on other operating expenses such as depreciation and property maintenance as a result of delayed procurements and cancellation of scheduled maintenance works also contributed to the good performance.
The statement indicates the above positive revenue and expenditure performances were tempered by commission on sale of Government securities that was nearly 40 percent lower than the previous year due to the capping of this commission to a maximum of Sh3 billion during the year under review.
Monetary policy expenses also went up by 69 percent during the year due to the need to mop up undesirable liquidity generated by economic and political activities during 2007 and part of 2008.
Slight increases in staff costs and other operating expenses were noted to have impacted negatively on the profit.