KENYA'S CENTRAL BANK GOVERNOR NOMINEE NOW AWAITS PARLIAMENT'S APPROVAL

Central Bank governor nominee, Patrick Ngugi Njoroge.

Kenya’s Central Bank governor nominee Dr Patrick Ngugi Njoroge is now awaiting parliament’s approval before he can officially take office. This is after a parliamentary committee endorsed his nomination by President Uhuru Kenyatta.

The Finance, Planning and Trade committee’s final report recommended the approval for CBK chairman Mohammed Nyaoga, Dr Njoroge for the governor’s post, and Ms Sheila M’Mbijjiwe as the bank’s deputy governor.

Dr Njoroge is set to take over the helm of the Central Bank of Kenya (CBK) at a time when the shilling has lost ground against the US dollar and other major world currencies. So far, the Kenyan shilling has shed more than 7 per cent to the dollar this year.

“The nominee lamented that the Kenyan shilling has been depreciating against the major world currencies. He however observed that the depreciation can only be addressed through market based solution. His role at the bank’s helm will be to provide the right environment to address the depreciating shilling,” the committee’s report reads in part.

Dr Njoroge will also have to deal with the high interest rates in the market, a fact he reckons as concerning.

“I am concerned like anybody else by the high interest rates charged by commercial banks. Their spreads are as high as 6.8 per cent. I will work closely with these banks to develop innovative ways that are sensitive to their profits but also at the same time address the high interest spreads,” Dr Njoroge said during his vetting.

He told the committee that he owned neither property nor any investments within the country. The 54-year-old IMF economist is Yale-educated and was among five candidates shortlisted by the Public Service Commission (PSC) in a competitive process that drew eight qualified applicant including the current deputy governor Dr Harun Sirima, Dr Geoffrey Mwau, Dr Edward Sambili and Dr Peninah Wanjira Kariuki. He previously worked in Kenya’s Finance and Planning ministries before heading to Washington on the IMF posting.

Ms Mbijjiwe was one of the inaugural members of the central bank’s Monetary Policy Committee where she developed 170 datasets to be monitored by CBK within the economy for the purposes of devising sound economic policies.

“The committee has noted that the nominee was open-minded, honest and exhibited impressive knowledge of topical issues touching on the financial sector and has the requisite abilities, qualifications and experience to serve as the deputy governor,” the report said of her vetting.

Mr Nyaoga, who was also approved by the committee, will serve as the regulator’s first chairman if passed by parliament. A renowned advocate, Mr Nyaoga was tapped to the board because to his corporate governance and administration experience. He will replace Dr Mbui Wagacha, an economist who held the position on an interim basis.

In 2012, Kenya reviewed the Central Bank Act separating the chairperson and the governor’s roles. Previously, the governor chaired the CBK board meetings.

The East African