MPs have Okayed a plan by the government to dissolve the Ruaraka-based Kenya School of Monetary Studies (KSMS).
The National Assembly’s Public Investment Committee on Commercial Affairs and Energy has overruled an earlier decision by the Treasury that sought to stop the process initiated three years ago.
“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 to proceed with the winding up process,” a report tabled in parliament by committee chair David Pkosing reads.
The Registrar now has 60 days to conclude the process.
The committee further recommended that the institution be made a directorate under the Central Bank of Kenya (CBK) “given that all the assets and liabilities are currently owned and borne by CBK”.
The Registrar issued Gazette notice in 2020 of its intention to wind up the body.
“Pursuant to section 897 (3) of the Companies Act, it is notified that at the expiration of three (3) months from the date of this gazette, the names of the under-mentioned companies shall, unless a cause is shown to the contrary, be struck off the register of companies and the companies shall be dissolved,” read the notice by the then Registrar of Companies Alice Mwendwa.
Treasury, however, wrote to the then solicitor general Ken Ogeto stopping the process.
CBK board wanted to convert the institution into a department hence the decision to seek for an opinion from the Attorney General.
On April 11, 2022, the then AG wrote to the Cabinet Secretary advising that he should withdraw an objection filed with the Registrar to allow for the completion of the dissolution process.
Former Treasury cabinet secretary in the Jubilee administration had argued that plans were in place to revive the institution.
KSMS was established as a school of the Central Bank of Kenya and registered in 1997 as a corporate entity, limited by guarantee, under the Companies Act (Chapter 486 of the Laws of Kenya).
Its primary mandate was to build capacity for the banking industry and support the Bank in delivering on its core mandate of fostering a stable and well-functioning financial system.
CBK and Treasury agreed to set up the institution to offer specialized education and training programs in banking, finance, economics and other related studies not available in other training institutions and universities.
It also offers conference facilities.
CBK owns 99 percent shares in the institution whereas the Treasury is the minority shareholder.