Kenya: National Assembly Okays Musangi Nomination as CBK Board Chairperson

14 September 2023

Nairobi — The National Assembly has approved the nomination and subsequent approval by the Joint National Assembly and Senate Finance Committee of Andrew Musangi to the next chairperson of the Central Bank of Kenya (CBK) board of directors.

The remaining hurdle for Musangi to assume the position is for the Senators who are on recess to approve the report.

The Senate is away on recess and his approval is among the top agenda of business once they resume sittings next week.

Majority Leader Kimani Ichung'wah advised Musangi once he takes the helm of the position not to entertain anything that will interfere with his integrity in the post adding that the current management of CBK will ensure financial safeguards in banks.

"I want to agree that he is a professional who fits the bill as the Chair of CBK.He succeeds another lawyer and I don't whats the preference for lawyers to head this board.I don't support Musangi because he is an advocate or lawyer but because he is an accomplished professional," he said.

Buuri MP Mwithirania Mugambi defended Musangi's capability in transforming the fiscal and monetary policies at the Central Bank while urging him to be fast forward in adjusting to the changes and growth in fiscal development.

"This candidate has demonstrated capability to bring interaction between currency management and the other activities of the economy. Its our wish that this candidate will be first forward in thinking because they are new development in the fiscal development," said Mugambi.

Ugenya MP David Ochieng called on the nominee to ensure that the current crisis on dollar shortage that has impeded foreign trade is urgently dealt with as it is driving away potential investors in the country.

"As we speak the shilling is on a free fall,we are looking upon the CBK and its board to help us so that we are able to trade without the envision of the dollar shortage," said Ochieng.

Once approved, Musangi will replace Mohammed Nyaoga who exited the position after completing his tenure in June.

The Board of Directors provides oversight of the Bank's functions by formulating policies, other than the formulation of monetary policy, and reviewing performance.

The Board comprises eleven members: the Chairperson, the Governor, the Permanent Secretary to the National Treasury and eight non-executive directors all appointed by the President.

During his vetting, Musangi recommended the oversight and scrutiny of the Central Bank of Kenya especially when it comes to Appropriation in Aid (A-I-A) funds.

The Appropriation in Aid funds collected by state agencies and parastatals to run their function are not collected from the National Treasury and hence not subject to oversight.

Musangi who appeared for vetting before the Joint Committee on Finance of the National Assembly and the Senate opined that scrutiny ought to be done on A-I-A funds for the CBK to enhance transparency.

"Each individual institution that gains from the A-I-A is oversight by Parliament. The question should be why not the Central Bank but to the extent that, that oversight is restricted to the Central Bank of Kenya function as banker, I don't see why not," he said.

Musangi called for the strengthening of the Special Bank Investigating Unit (SPIU) and General Bank Supervision (GSU) to fast-track fraudulent bank activities which include withdrawals and money laundering whose investigations ran for months.

"We must look at the supervisory role that CBK plays to ensure its satisfactorily strengthened such that when a public has a compliant there is recourse for immediate resolution not when a matter is investigated for eight months," he said.

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