Services of the central bank of kenya
Last updated on June 10th, 2023 at 01:02 pm
These are the services of the Central Bank of Kenya (CBK). It is a public institution established by the Constitution on March 24, 1966 and opened to the public on September 14, 1966.
Its headquarters are located along Haile Selassie Avenue and it is headered by the Governor of Central Bank.
Its main task is to formulate and implement monetary policy that promotes price stability, promotes liquidity, stability and stability of the banking sector, issues paper money and coins and provides government, banks businesses and other financial institutions.
Price stability builds trust and confidence among investors, allowing them to make long-term decisions for economic growth.
Below are the main functions of the Central Bank of Kenya
- The bank is responsible for issuing Kenyan currency and ensuring that the currency is free of counterfeits, clean and fit for circulation.
- The Central Bank conducts economic and financial analysis and analyzes a number of indicators in the economy to support monetary decisions.
- The Central Bank uses various tools to manage money supply in the economy and banks manage the issuance and redemption of securities and bonds.
- It authorizes and monitors payment systems that facilitate the transfer of funds between parties. In addition, the bank supports processing through Kenya’s payment and processing systems.
- The Central Bank provides banking services to the government (national and regional) and commercial banks.
- It authorizes, controls and oversees financial institutions under its jurisdiction, including commercial banks, microfinance institutions, foreign exchange institutions and representative offices of foreign banks.