The Auditor General has criticized the Central Bank of Kenya (CBK) for hiring managers who were not fully qualified and ignoring salary procedures.
Auditor General Nancy Gathungu said the bank has been breaking Human Resource rules.
Some managers were appointed even though they lack the required experience or years of service. Though some had been acting in the same roles before, they still did not meet the qualifications for full appointment.
As of May 2025, CBK had 1,311 employees. About 35% were aged 51-60 years, meaning many are close to retirement. Kikuyu and Kalenjin employees make up 44% of the workforce.
The report also said CBK broke the law by not consulting the Salaries and Remuneration Commission (SRC) when setting pay and allowances. This mistake affected staff promotions and salary placements.
The bank was also criticized for how it handled staff transfers to other government offices. It did not ask for refunds for employees working elsewhere and let some transfers run longer than allowed, causing confusion about their job status and HR rules.
The Auditor General warned these problems expose the bank to legal and financial risks and cause losses due to unrecovered costs.
CBK Board of Directors Issue
The report also revealed that CBK went for more than a year without a full board of directors.
Between December 2024 and May 2025, there were no non-executive board members. This affected the work of important committees such as the Human Capital Committee, which handles staff matters.
Five new board members were appointed in May 2025, but three positions are still vacant.
CBK is among the highest-paying government agencies. The average monthly salary is Sh349,605, and the total payroll rose to Sh5.5 billion in the year ended June 2025, up from Sh5.2 billion the previous year.
CBK made a Sh65.8 billion profit in 2025, recovering from a Sh24.8 billion loss the previous year. However, it will not pay dividends to the Treasury. Instead, it plans to keep the profit to raise its capital to Sh100 billion.
This is the first time in seven years that CBK will not remit dividends to the government.
The findings have sparked public concern about management and accountability at the Central Bank.
By BNN Writer.