CBK governor nominee has no property in Kenya

The nominee for Central Bank of Kenya governor Patrick Ngugi Njoroge does not have a single investment in Kenya but that does not mean he has no confidence in the economy, he told a panel of MPs vetting him for the position on Tuesday.

Dr Njoroge, 54, has lived abroad for most of his adult life during which he has worked mostly with the International Monetary Fund in the US. He is, however, planning to relocate if he is confirmed to the governor’s post.

“I don’t have a single asset in Kenya. I sold my assets in the US where I was,” he said in response to questions by the National Assembly Committee on Finance, Planning and Trade chairman Benjamin Lang’at.

“I pursue things slowly and maybe years after I retire from being governor, I will move on and invest in particular things,” he added.

He said the lack of investments in the country or a family (he is not married) is not a reflection of fear of making decisions.

“I have made many difficult decisions. I weigh situations and back them with data before making decisions,” said Dr Njoroge.

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He said taming runaway interest rates, inflation and the proposed increase in bank capitalisation will top his priorities if appointed.

The volatility of the shilling and inflation rates worry him most, he told the MPs. If confirmed, he plans to seek answers from CBK officials who recommended to the Treasury the steep increase in the minimum bank capitalisation requirement as outlined by Treasury secretary Henry Rotich in last week’s budget speech.

“It will be my first question to people in CBK who proposed to raise the minimum capital. This means it will force some consolidations. The small banks may have niches they are servicing. Once consolidated then big banks may not be interested in serving those niches,” he said.

On the fluctuating shilling, Dr Njoroge said urgent action needs to be taken to stabilise the currency, but market forces should determine its value rather than pegging it on fear or some currency.

On inflation, which currently stands at six per cent, Dr Njoroge said if not contained the exchange rate will be dragged to the ground.

“My concern is to lower inflation even further. We need to bring it lower than six per cent,” he said.

Deputy governor nominee Sheila M’Mbijjiwe, who served for two terms at the CBK’s Monetary Policy Committee (MPC), also faced the vetting team on Tuesday.