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Treasury explains need for CBK chairman
CBK governor, Prof Njuguna Ndung’u. The regulator and Treasury are divided over proposal to appoint a chairman of the bank’s board. Photo/FILE
In Summary
- Draft constitution proposes appointment of a chairperson to board of directors.
- Officials at Treasury say move allows for oversight on decisions and actions taken by the banking sector regulator.
- But those at CBK say it could be a window for politicians to control Kenya’s monetary policy.
Consultant economist at Treasury and a member of the CBK board Terry Ryan opposed the new proposal.
“Technical work should be left to technocrats,” said the veteran economist who has worked at Kenya’s Treasury for over four decades adding: “The debate on CBK’s independence in Kenya and other jurisdictions however remains unresolved.”
Prof Ryan pointed out that while the current constitution for example allows the Governor to run CBK and at the same time chair the board, he still remains ultimately answerable to the minister for finance.
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