CBK pays Ksh.4 billion in dividend to consolidated account at Treasury

What it means for Kenyans as CBK raises benchmark lending rate to 8.25%

The Central Bank of Kenya (CBK) has paid in dividend, Ksh.4 billion to the Government Consolidated Fund (GCF) under the National Treasury.

The fund, originating from the General Reserve Fund (GRF) was approved by the CBK Board to ensure the regulator is well-resourced to carry out its function.

According to CBK, the payout will modenise its facilities and infrastructure in keeping with its mandate.

The funds will also go a long way to strengthen the CBK’s financial position to make it more resilient to economic shocks.

This even as CBK revealed it increased its paid-up capital from Ksh.35 billion to Ksh.38 billion. The increase was in line with Section 8(3) of the CBK Act and implementation through a transfer of funds from GRF.

“The increased paid-up capital to Ksh.38 billion strengthens CBK’s financial position, enabling it to pursue its functions in a more volatile environment. Specifically, CBK will be able to better absorb losses that may arise from the discharge of its functions, provide confidence that it will meet its domestic obligations and cushion against shocks that may adversely affect its balance sheet,” CBK said in a statement on Friday.

The regulator has lined up a number of projects which will play an important role in its long-term health and viability, strengthening its operations in line with its responsibilities and changes in the financial sector.

POST TAGS:
FOLLOW US ON:
CMA signs deal with
Costly food prices p

Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

Rate This Article: