"We did receive some complaints, allegations, which we did investigate some time back," Nicholas Simani, the spokesman of the Kenya Anti-Corruption Commission.

Kenya's tabloids have repeatedly carried stories accusing Mullei of nepotism and corruption at the central bank.

The Standard, one of Kenya's leading newspapers, reported on Tuesday that the Ministry of Finance had asked KACC to investigate Mullei over allegations of corruption.

The Standard said KACC had received the letter from the Ministry of Finance on February 27 and had not acted on it.

But Simani said KACC had completed its own investigations on the governor on Feb 23.

The allegations of corruption in the central bank are the latest to rock President Mwai Kibaki's government whose image has suffered badly after three senior ministers resigned over graft.

The finance, energy and education ministers resigned last month after their names were linked to two graft scandals in which millions of state funds were corruptly paid out.

Mullei, who has strongly rejected recent pressure by manufacturers and exporters to intervene in the currency market to weaken the strong Kenya shilling, has previously faced allegations of wrongdoing over a banknotes printing tender.

He denied any wrongdoing over the tender, which was later awarded to Britain's De La Rue Currency.

Mullei was appointed by Kibaki in March 2003.

As the governor, he enjoys security of tenure.

Under Kenyan laws, the governor can be sacked if convicted of dishonesty or fraud or upon the recommendations of a tribunal appointed by the president to investigate him.

- Nampa-Reuters

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