Ksh. 4 billion in dividends have been paid by the Central Bank of Kenya (CBK) to the Government Consolidated Fund (GCF) within the National Treasury.
The CBK Board approved the fund, which came from the General Reserve Fund (GRF), to make sure the regulator has the resources necessary to carry out its duties.
CBK claims that the payment will modernize its infrastructure and facilities in accordance with its mission.
The funds will also significantly improve the CBK’s financial standing and increase its resilience to economic shocks.
At the same time, CBK disclosed that its paid-up capital had increased from Ksh.35 billion to Ksh.38 billion. The increase was carried out through a transfer of funds from GRF in accordance with Section 8(3) of the CBK Act.
“The strengthened financial position of CBK, which enables it to carry out its functions in a more volatile environment, is made possible by the increased paid-up capital to Ksh.38 billion. In particular, CBK will be better able to absorb losses that may result from the performance of its functions, instill confidence that it will fulfill its domestic obligations, and protect against shocks that could negatively affect its balance sheet, the bank said in a statement on Friday.
The regulator has a number of projects in the works that will be crucial to its long-term health and viability, bolstering its operations in accordance with its duties and the financial sector’s changes.
