CBK must sell the Grand Regency

The Central Bank of Kenya (CBK) must not include the Grand Regency Hotel in its balance sheet. Instead, it should sell it as a repossessed item for debt recovery.

The role of CBK, as stipulated in the CBK Act, is to formulate and implement monetary policy that should be directed to maintain stability in general price levels in Kenya.

It’s other principal objective is to foster liquidity, solvency and proper functioning of a stable based financial system.

In the case of the Grand Regency Hotel, the bank acted ultra vires by advancing Sh2.5 billion to Uhuru Highway Development in the 1990s.

The unclear events then implicated and involved the Goldenberg, Mr Paul Kamlesh Pattni and many other people. The legal battles that have compounded all these are public knowledge.

CBK is a monetary policy regulator and has no business owning the hotel.


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