Search for Central Bank of Kenya Chairperson: What the board and the market need

 The State has kicked off the process of hunting for the chairperson of the Central Bank of Kenya (CBK), who will replace outgoing lawyer turned banking and finance enthusiast, Mohammed Nyaoga whose second and final four-year term ends next month. 

 The Public Service Commission (PSC) advertised the job in the local dailies on Wednesday, capping the experience of the suitable candidate at ten years in the fields of economics, banking and finance, among other accolades. 

The office holder, according to the CBK board, will be responsible for the country’s monetary policy formulation and keeping under constant review, the performance of the Governor of the bank while maintaining a sound use of resources appropriated to the apex bank. 

“The Chairperson shall hold office for a term of four years but shall be legible for reappointment for a further term of four years. The office holder shall be paid by the bank such allowances as may be determined from time to time,” PSC secretary said.  

The continued streak of leadership changes at the bank comes on the heels of efforts to reverse the effects of the free fall of the Kenya shilling which hit a low of 136.02 against the dollar on Tuesday, ostensibly setting up the country for more expensive imports and debt servicing anguish. 

CBK data shows that the local currency slipped from an average of 135.9 on Monday, to a low of 136.02 Tuesday evening. This even as the bank introduced forex code and a government deal to import oil on credit from Gulf States. 

Further, the incoming chairperson will reckon with the fact that local commercial banks are holding back on plans to extend credit to the government on inability to service local debt. The move has seen the Treasury miss targets as most local lenders, including other financial players, are now going slow on investing in government securities.  

 Meanwhile, the Public Service Commission will be conducting interviews for six short-listed candidates next week on Tuesday (May 9) to fill the post of central bank governor. 

 Safe pair of hands crucial

 Among those warming up to replace Patrick Njoroge, whose second and final four-year term ends in June, are former central bank deputies Haron Sirima and Edward Sambili, and four others. The two missed out on the job in 2015, when Mr Njoroge got hired. 

 Mr Sirima is currently heading the country’s debt management office, while Mr Sambili is a former Planning PS in the Treasury. 

Others who are lined up for grilling are Dorcas Muthoni Mutonyi, Nancy Onyango (currently serving as a director of the Office of Internal Audit and Inspection at the International Monetary Fund, IMF) Adan Abdulla Mohamed and Kamau Thugge (former PS, Treasury). Both Mr Abdulla and Mr Thugge are serving as advisers in the office of President William Ruto. 

In March, Parliament approved the nomination of Susan Jemtai Koech as deputy governor, after she was picked for the job by the President. In the meantime, the Public Service Commission has advertised for the role of a second deputy to replace Sheila M’Mbijjewe whose second four-year term also ends in June. 

Citizen Digital Business understands that the market is closely monitoring the ongoing leadership changes at the apex bank with industry players hoping to secure the signature of an individual who will be able to restore sanity in both the banking and forex, beyond economic models geared towards averting sinking banks.