Reserve Bank of Malawi pays K1.5 billion severance to reinstated deputy governor

The payout to Henry Mathanga follows his return from forced leave, adding to fiscal scrutiny as the central bank navigates a K16 trillion domestic debt burden.

By Handelsavisen Newsroom · Automated 2026-07-29 06:48 UTC · 1 min read

The Reserve Bank of Malawi (RBM) has disbursed K1.5 billion in benefits to former Deputy Governor Henry Mathanga, confirming the financial settlement following his reinstatement after years on forced leave.

RBM spokesperson Boston Maliketi Banda confirmed the payment on Tuesday, marking the conclusion of a protracted internal dispute that had sidelined Mathanga for an extended period.

2 trillion in the previous fiscal year, according to earlier coverage.

The payout represents a significant expenditure for the central bank, drawing attention to governance and compensation practices within Malawi’s monetary authority.

The settlement arrives at a time of heightened fiscal pressure for the institution.

Handelsavisen previously reported that Malawi’s total debt stands at K16 trillion, with 65 percent classified as domestic debt.

Interest payments on this debt are projected to rise to K2.7 trillion in the 2026/27 financial year, up from K2.2 trillion in the previous fiscal year, according to earlier coverage.