This chapter presents an interesting dimension of the history of the Central Bank of Kenya (CBK), given that it is authored by a person who was the National Treasury Officer responsible for establishment of the CBK. The author offers a chronology of how CBK was founded, the discussions around its name and how its operations came to be independent of the National Treasury. He highlights important issues on central bank capital, ownership of the Bank, government borrowing from the Bank and conduct of rudimentary monetary policy. The author also highlights his working relationships with the first governors of CBK, Dr Baranski and Mr Duncan Ndegwa. It is noted that the author’s contribution to Kenya in the field of finance and banking during the country’s formative years, earned him the honour of Moran of the Order of the Burning Spear (MBS).
The Role of Central Bank Capital Revisited