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Auditor faults CBK for delay in dissolving monetary training school

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Auditor General Nancy Gathungu during a past interview at her office in Nairobi. PHOTO | LUCY WANJIRU | NMG

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Summary

  • The Registrar of Companies gazetted a notice to dissolve the Ruaraka-based institution last year.
  • Kenya School of Monetary Studies (KSMS) is owned by the CBK for purposes of training manpower for the financial services sector.
  • CBK and the Ministry of Finance established KSMS as a training institution dedicated to offering specialized education and training programmes.

The Auditor-General has faulted the Central Bank of Kenya (CBK) for the delay in winding down the Kenya School of Monetary Studies in line with earlier State plans.

The Registrar of Companies gazetted a notice to dissolve the Ruaraka-based institution last year.

Kenya School of Monetary Studies (KSMS) is owned by the CBK for purposes of training manpower for the financial services sector.

It was established in 1997 with the primary mandate to build capacity for the banking industry and support CBK deliver on its core mandate of fostering a stable and well-functioning financial system.

Auditor-General Nancy Gathungu in her CBK audit report for the year ended June 30, 2021, dated September 27, 2021, said it is critical that the CBK management follows up and expedites the conclusion of the dissolution process of the school which she noted has been operating without a functional board for the last six years.

"The dissolution of the school as a legal entity was gazetted on 24 April 2020. This was in an effort to address concerns regarding governance and internal controls at KSMS," said Ms Gathungu.

"However as at the date of this report, KSMS had not been dissolved."

CBK and the Ministry of Finance established KSMS as a training institution dedicated to offering specialized education and training programmes in banking, finance, economics, and other related studies, which were not available in other training institutions and universities.

The institution offers executive training in English and French in business science, agriculture finance, investment banking, business intelligence, and data analytics, and financial modelling at diploma and certificate levels.

It also has a postgraduate diploma and Master’s degrees courses in finance, banking, economic, and public policy analysis in collaboration with Moi University and the Jomo Kenyatta University of Agriculture and Technology.

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