NAIROBI, Kenya, Sept 28 -The Central Bank of Kenya (CBK) Monday noted that it had transferred Sh 5.5 billion from its General Reserve Fund (GRF) to the Treasury’s Consolidated Fund bringing to Sh 10.5 billion the total dividends paid since February.
In a statement, the firm noted that the transfer was executed by crediting the Ministry of Finance’s Deposit Account and that the distribution is in ‘accordance with Sections 9 and 51 of the CBK Act, relating to the treatment of CBK’s
net annual profits, and followed approval by the CBK Board.”
“The CBK announces that it has today transferred to the Government Consolidated Fund Ksh.5,500,000,000 as a distribution from CBK’s GRF,” the regulator said in a statement.
At the same time, CBK noted that while it paid its dividends, it is still focused on delivering its mandate of modernizing its facilities and infrastructure in keeping with its mandate.
“The completion of the identified projects will play an important role in CBK’s longterm health and viability, strengthening its operations in line with its responsibilities and changes in the financial sector,” it said.
The regulator noted it also needs resources to issue new generation currency, with an expected cost of Ksh.15 billion.
CBK added that the GRF is also needed to strengthen Strengthening CBK’s financial position to make it more resilient to shocks.
“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, CBK needs to increase its paid-up capital in the period ahead towards its authorized capital of Ksh.50 billion,” CBK added.