These are the functions of the Central Bank Of Kenya (CBK). This is a public institution that was established by an Act of Parliament on March 24, 1966, and opened its doors to the public on September 14, 1966. Its head office is located along Haile Selassie Avenue and Dr Patrick Njoroge is the current Governor.
Its main mandate is to formulate and implement monetary policy that promotes price stability, fosters liquidity, solvency, and stability of the banking sector, issue currency notes and coins, and provides banking services to the Government, commercial banks and other financial institutions.
Stability in prices builds confidence and the confidence of investors which allows them to make long-term decisions for economic growth.
Below are the main Functions Of The Central Bank Of Kenya
1. The bank is responsible for the issuance of Kenyan currency and ensures that the currency is free from counterfeits, clean and fit for circulation.
2. The Central Bank undertakes economic and financial analysis and monitors a wide range of indicators on the economy to support monetary decisions.
3. The Central Bank uses various tools to manage the supply of money in the economy and the bank also manages the issuances and repayment of treasury bills and bonds.
4. It licenses and monitors payment systems that facilitate funds transfer between parties. In addition, the bank facilitates settlements through the Kenya payments and settlement systems.
5. The Central bank provides banking services to the governments ( national and county ) and commercial banks.
6. It licenses, regulates and supervises financial institutions under its purview, including commercial banks, microfinance institutions, forex bureaus, and representative offices of foreign banks.