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Cbk at a Glance

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CBK AT A GLANCE
Establishment of the Bank
The Central Bank of Kenya was established in 1966 through an Act of Parliament - the Central Bank of Kenya Act of 1966.

The establishment of the Bank was a direct result of the desire among the three East African countries to have independent monetary and financial policies. This led to the collapse of the East Africa Currency Board (EACB) in mid 1960s.

Structure of the Bank
Responsibility for determining the policy of the Central Bank is given by the Central Bank of Kenya Act to the Board of Directors. The Board consists of seven members:

- the Governor, who is also its chairman
- the Deputy Governor, who is deputy chairman
- the Permanent Secretary to the Treasury who is a non-voting member
- five other non executive directors

All members are appointed by the President to hold office for a term of four years and are eligible for reappointment. In the case of the Governor, appointment is for a maximum of two terms of four years each and can only be terminated by a tribunal appointed by the President to investigate his conduct.

The executive management team comprises the Governor, the Deputy Governor and nine heads of department who report to the Governor. The Bank operates from its head office in Nairobi and has branch offices in Mombasa, Kisumu and Eldoret.

The Central Bank Act and it's relations with the Government
The Central Bank of Kenya Act of 1966 set out objectives and functions and gave the Central Bank limited autonomy. Since the amendment of the Central Bank of Kenya Act with effect from April 1997, the Central Bank operations have been brought into line with the changed situation in Kenya caused by economic reforms. There is now greater monetary autonomy.

Though required to support the general economic policy of the Government, the Central Bank of Kenya is not subject to any

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