This archive report was first published on 24 October 2021.
Published on October 24, 2021, the Auditor-General's report highlighted the Central Bank of Kenya's (CBK) delays in dissolving the Kenya School of Monetary Studies (KSMS).
The KSMS has been without a functional Board of Directors for six years, and its dissolution was gazetted on April 24, 2020, in an effort to address concerns regarding governance and internal controls.
However, as of the date of the Audit report on the Central Bank of Kenya for the year ended June 30, 2021, the KSMS had not been dissolved, prompting the Auditor-General to call for the CBK Management to expedite the conclusion of the dissolution process.
Ms. Nancy Gathungu, the Auditor-General, emphasized the importance of following up and expediting the dissolution process, stating, "Consequently, it is critical that CBK Management follows up and expedites the conclusion of the dissolution process."
Ms. Gathungu also pointed out that the CBK has failed to appoint a second Deputy Governor, as required by the CBK Act Cap 491 Section 13B(1), which states that there shall be two Deputy Governors who shall be appointed by the President through a process that gets approval from parliament.
Additionally, the law requires that the Bank has 8 Non-Executive Directors of the Board, but during the period under review, CBK had only 4 Non-Executive Directors.
