The Central Bank of Kenya (CBK) has transferred Kshs. 5 billion to the Government Consolidated Fund as an exceptional distribution from its General Reserve Fund (GRF) in the current Financial Year 2020/2021.
The funds released on Wednesday is expected to help the government meet its budgetary obligation in the wake of revenue pressures as a result of the coronavirus pandemic.
“The CBK Board authorized the transfer during its discussion of the unaudited Financial Statements for FY2020/2021 as at December 31, 2020, noting the very exceptional circumstances caused by an unprecedented global pandemic that have put a strain on Government’s resources, and having weighed the various factors as stipulated by the law,” said Governor Dr. Patrick Njoroge.
Under section 9 of the CBK Act, the regulator is required to transfer at least 10% or any other amount as the Board, in consultation with the Minister, may determine, of the net annual profits of the Bank after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff benefit funds, and such other contingencies and accounting provisions as the Bank deems appropriate.
“In particular, the Board also considered CBK’s financial needs with the objective of ensuring CBK is well-resourced to deliver on its mandate in the increasingly uncertain economic environment,” Dr Njoroge added.