The Lower Eastern Times Opening The Third Eye
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Members of Parliament (MPs) have approved the government’s proposal to dissolve the Kenya School of Monetary Studies (KSMS) located in Ruaraka. The Public Investment Committee on Commercial Affairs and Energy in the National Assembly has overridden the Treasury’s previous decision to halt the process that was initiated three years ago.
The committee, chaired by David Pkosing, presented a report in parliament stating, “The committee recommends that, there being no justifiable reason as to why the National Treasury objected to the dissolution of the KSMS, the Registrar of Companies proceed with the winding-up process.” The Registrar now has a 60-day timeline to complete the dissolution.
Additionally, the committee suggested transforming the institution into a directorate under the Central Bank of Kenya (CBK) since CBK currently owns all assets and liabilities of KSMS.
The Registrar had issued a Gazette notice in 2020, expressing the intention to wind up the institution. However, the Treasury intervened by writing to the solicitor general at that time, Ken Ogeto, to stop the process. The CBK board had sought to convert the institution into a department, leading to the request for an opinion from the Attorney General.
On April 11, 2022, the then Attorney General advised the Cabinet Secretary to withdraw the objection filed with the Registrar to facilitate the completion of the dissolution process. The former Treasury cabinet secretary in the Jubilee administration had argued for the revival of the institution.
KSMS, established in 1997, was created as a school of the Central Bank of Kenya with the mandate to build capacity for the banking industry and support the Bank in achieving a stable and well-functioning financial system. The institution provides specialized education and training programs in banking, finance, economics, and related studies, as well as conference facilities. CBK holds a 99 percent stake in the institution, with the Treasury as the minority shareholder.
