In Summary
  • Lawmakers accused Dr Njoroge of contempt of parliamentary authority and imposing his own “regulations” on the banking sector.
  • MPs had threatened to block his reappointment for a second term over his failure to publish the banking regulations.

The terms of top executives at the Central Bank of Kenya (CBK) are set to expire at around the same time in June, potentially presenting a transition headache for the regulator.

CBK Board Chairman Mohammed Nyaoga, Governor Patrick Njoroge and Deputy Governor Sheila M'Mbijjewe were all appointed on June 19, 2015 for four years. The four-year term will end on June 18, which is just about three weeks away.

Although Ms M'Mbijjewe had been expected to leave in 2018 after attaining 60 years — the mandatory retirement age for public servants, the contract she signed in June 2015 took precedence over age.

It therefore means CBK will definitely have a new deputy governor. Dr Njoroge could have his term renewed as well as Mr Nyaoga.

However, the fact that their contracts are all ending around the same time does not augur well for an institution so crucial in regulating the banking sector.

VITAL ROLES

The CBK has the mandate of formulating and implementing monetary policy “that promotes price stability, fosters liquidity, solvency and stability of the banking sector”, issue currency notes and coins, and provide banking services to the government, commercial banks and other financial institutions.

Meanwhile, five other directors appointed in June 2016 will conclude their terms next year.

The terms of Ms Rachel Dzombo and Mr Samson Cherutich will be ending on December 4, 2020 while those of Mr Ravi Ruparel, Ms Nelius Kariuki and Ms Charity Kisotu will be expiring on November 3, 2020.

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