CBK Pays Ksh.4 Billion ‘Dividends’ To Treasury

 

By Kepha Muiruri

The Central Bank of Kenya (CBK) has paid Ksh.4 billion to the consolidated fund at the National Treasury representing the reserve’s bank equivalent dividends for the 2021/22 year.

At the same time, the apex bank says it has raised its paid-up capital to Ksh.38 billion from Ksh.35 billion.

CBK says the transfer has been reached after the consideration of the bank’s financial needs

“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.

CBK uses resources from its general reserve fund (GRF) to partly modernize its facilities and infrastructure to keep up with its mandate.

“The completion of the identified projects will play an important role in CBK’s long-term health and viability, strengthening its operations in line with its responsibilities and changes in the financial sector,” added the CBK.