Central Bank of Kenya was established in 1966 through an Act of Parliament – the Central Bank of Kenya Act of 1966 as the Central Bank of the Republic of Kenya. Following August 27th, 2010, the promulgation of the new constitution, the Central Bank of Kenya (CBK) is now established under Article 231 of the 2010 Constitution. Central Bank of Kenya is located on Haile Selassie Avenue- Nairobi.
The Central Bank has the responsibility of formulating monetary policy, issuing currency, promoting price stability and performing any other functions conferred on it by an Act of Parliament.
Head Office, Branches and Currency Centers
The Bank operates from its Head Office in Nairobi with branch offices in Mombasa, Kisumu and Eldoret. It runs Currency Centers in Nakuru, Nyeri and Meru. The Bank also has a major stake in Kenya School of Monetary Studies (KSMS) which is headed by an executive director answerable to the Governor.
The executive management team is made up of;
- The Governor
- Two Deputy Governors
- Heads of department
The Governor is the chief executive officer of the Bank and subject to the general policy decisions of the Board is responsible for the management of the Bank, including the organization, appointment and dismissal of the staff in accordance with the general terms and conditions of service established by the Board. The Governor has authority to incur expenditure for the Bank within the administrative budget approved by the Board.
The President appoints the Governor and Deputy Governors through a transparent and competitive process and with Parliament approval. They each hold a four year term of office, but are eligible for re-appointment for one further term of four years.
The objectives of the Central Bank of Kenya are;
- To issue currency notes and coins.
- To formulate and implement foreign exchange policy.
- To hold and manage its foreign exchange reserves. To license and supervise authorized dealers.
- To formulate and implement such policies as best promote the establishment, regulation and supervision of efficient and effective payment, clearing and settlement systems.
- To act as banker and adviser to, and as fiscal agent of the Government.