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.
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