CBK says Board Chair paid Sh3Mn in retainer fees

December 13, 2016
CBK said that commercial banks will use the Central Bank Rate (CBR) as the base rate to price loans that is currently at 10.5 per cent/FILE
CBK said no mileage expenses or sitting allowances were paid to directors during the period/FILE

, NAIROBI, Kenya, Dec 13 – Central Bank of Kenya has clarified the Board Chairman Mohammed Nyaoga was paid Sh3 million and not Sh6 million as reported in sections of the media.

CBK termed the reports ‘reckless’ and ‘misguided’ adding the financial accounts were audited and published, and ‘the auditor’s opinion was unqualified.’

In a statement, CBK said the Sh5.887 million fees to non-executive directors published in its financial statement included the fees of the Chairman, Principal Secretary, National Treasury and travel expenses by the directors.

Director’s travel expenses totalled to Sh837,000 for official trips made to Mombasa, Turkey and the UK.

“These payments were made in line with policy guidelines issued in 2014,” said CBK.

The board has not met for two years because of lack quorum with the CBK Governor Dr. Patrick Njoroge holding an executive director’s position while Mr. Nyaoga and Treasury PS Kamau Thugge as the only non-executive directors during the period.

President Uhuru Kenyatta later appointed five more members in November 2016.

The directors are responsible for ensuring the Bank keeps proper accounting records and safeguarding the assets of CBK as well as keeping the management accountable.

The Bank has come under scrutiny in the recent past over its handling of the financial sector after three banks went into receivership following financial mismanagement and liquidity constraints.

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