Economy
Kamau Thug is poised for the post of Governor of the Central Bank of Kuwait after the approval of the MPs
Wednesday 07 June 2023
Candidate for Governor of the Central Bank of Kenya, Dr Kamau Thug, before the Ministerial Committee for Finance and National Planning in County Hall for scrutiny on May 30, 2023. Image | Denis Onsongo | NMG
MPs approved the appointment of Dr Kamau Thug as Governor of the Central Bank of Kenya, paving the way for him to succeed Dr Patrick Njoroge as the tenth head of the country’s monetary regulator.
Dr Thugge, a former PS of the National Treasury and now Head of Finance for the Council of Economic Advisers, will take office in a period of high inflation, a weak exchange rate and concerns about a dollar shortage in the economy.
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“After considering the suitability, ability and integrity of the candidate, and in accordance with Sections 13(1) and 13c of the Central Bank Law, Sections 3 and 8 of the Public Appointments Law and Standing Order 216(5), the Governor’s Committee on National Finance and Planning has recommended to the National Assembly that the Nomination of Dr. Kamau Thug as Governor of the Central Bank.
Dr. Thugge was nominated by President William Ruto from a pool of six candidates selected by the Public Service Commission on April 2.
It was examined on May 30, during which he indicated that his main focus as governor would be to build on the momentum of consolidation in the Kenyan banking sector to encourage bigger and better entities in the market.
The committee’s report stated, “The candidate informed the committee that, if confirmed, he will ensure the achievement of a greater amount of mergers and acquisitions in the banking sector as a solution to ensure efficiency and stability in the banking industry.”
He also indicated his intention to lead the issuance of dollar-denominated bonds in the local market as one of the measures to address the challenges prevailing in the foreign exchange market, which saw the shilling under pressure against major currencies. He believes the issuance will help get rid of what he sees as excess foreign currency deposits held by Kenyans.
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The candidate pointed out that the depreciation of the shilling was the result of the increase in global inflation as well as the performance of the US economy, and there was a need to consult with the banking sector to understand the obvious reasons for the accumulation of deposits in foreign currencies, the committee report said.
Dr. Thug is now expected to take over the governor’s office at any time before June 17, when the incumbent, Dr. Patrick Njoroge, is scheduled to step down at the end of his final four-year term.
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