Kenya’s Central Bank Pays KSh5.5bn Dividend to State

liquidity in the money market tightened, with the average interbank rate increasing to 6.7%, from 6.1% recorded the previous week, attributable to build-up of bank balances ahead of the quarter end reporting as well as anticipatory quarterly tax remittances.

The Central Bank of Kenya (CBK) transferred KSh 5.5 Billion to the Government’s Consolidated Fund as a distribution from its General Reserve Fund (GRF).

The National Treasury maintains the Consolidated Fund in an account known as the National Exchequer Account, kept at the Central Bank of Kenya

With an exceptional distribution of KSh 5 Billion on February 17th, 2021, the total distribution from the monetary authority’s General Reserve Fund 2020/21 financial accounts now amounts to KSh 10.5 Billion.

“Having weighed the various factors as stipulated by law, the CBK Board authorised the additional transfer of Sh5.5 billion to the Government Consolidated Fund from the CBK’s General Reserve Fund,” said the CBK in a statement issued Monday. 

What is a Consolidated Fund?

Article 206 of the Constitution establishes the Consolidated Fund in Kenya. This fund acts as the main bank account for the national government. The Public Finance Management (PFM) Act expounds on the Consolidated Fund.

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