The bank disclosed Thursday that it transferred the money from its General Reserve Fund to the Consolidated Fund on September 16.
The payment related to the 2018/2019 financial year increased from Sh800 million paid in the preceding period.
The Central Bank of Kenya (CBK) has increased its dividend payout to State five times to Sh4 billion even as National Treasury accused it of holding onto billions of shillings.
The bank disclosed Thursday that it transferred the money from its General Reserve Fund to the Consolidated Fund on September 16. The payment related to the 2018/2019 financial year increased from Sh800 million paid in the preceding period.
CBK’s disclosure comes two days after acting Treasury Secretary Ukur Yatani told Parliament that CBK was yet to release about Sh27 billion to the Treasury.
The Treasury collected Sh24.6 billion in the last financial year from State-owned companies, regulators and private firms where it has shareholding, against a target of Sh36.7 billion.
It blamed the shortfall on lower remittance by CBK, one of its biggest contributors and which was expected to deliver Sh5.8 billion, but only delivered 14 percent of it, even as it spent Sh15 billion on delivering new currency.
The CBK makes money from currency conversions, interest on loans to banks and overdrafts to the government.
The regulator has however defended its latest payout saying it considered its performance in the year ended June 2019 as well as its obligations and budgetary needs such as ongoing infrastructure projects.
“In making its determination, the CBK board also considered CBK’s financial needs with the objective of ensuring CBK is well-resourced to deliver on its mandate,” CBK said in a statement.
The payout was also guided by the need to strengthen the regulator’s financial position to make it more resilient to shocks presented by the substantial growth of the financial sector.
It has increased its authorised capital to Sh50 billion from Sh5 billion, where it has been for a decade. This was to accommodate the rise in paid-up capital from Sh20 billion to Sh35 billion.
CBK’s paid-up capital had remained at Sh5 billion since 2009, even as its monetary liabilities grew to Sh400 billion.
“The increased paid-up capital strengthens CBK’s financial position, enabling it to pursue its functions even in times of stress and sustaining its financial independence,” the regulator said.
The rise in capital, it explained, will strengthen its ability to meet its domestic obligations and cushion the economy against shocks arising from price and exchange rate movements.
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