Nyaoga’s star rises as he is named CBK board chairman

Mohammed Nyaoga, President Uhuru Kenyatta’s nominee for the position of Central Bank of Kenya (CBK’s) board chairman, has seen his fortunes rise sharply under the Jubilee Coalition’s administration.

Mining secretary Najib Balala was hardly three months in office when he turned to the corporate lawyer to chair a taskforce that would review mining licences and restructure the corruption-tainted industry.

The report that Mr Nyaoga handed to the minister after six–months was dramatic. It exposed the rot that would be used to justify cancellation of 65 mining licences worth trillions of shillings.

Tongues were still wagging over this apparent audacity when in February, Mr Kenyatta hired Mr Nyaoga for another precedent-setting assignment: to hear a petition by Makueni County residents that could lead to the first dissolution of a county government.

On Wednesday, it was the turn of the financial markets to be spooked by the lawyer’s meteoric rise under the Jubilee administration.

This was after President Kenyatta by-passed top economists and accomplished finance professionals to settle for the 54-year old corporate lawyer as chairperson of the CBK board.

Among the professionals shortlisted for the post were Dr Benard Mbui Wagacha, a macro-economist currently serving as a presidential economic affairs advisor and who has served as CBK chairman for the past two years.

Other contenders for the post were chairman of the Consolidated Bank of Kenya, Dr Benson Akong’o Ateng’ and Mr Nicholas Bartuiyot Korir, who is on secondment to Comesa Monetary Institute from Kenya School of Monetary Studies , which he headed.

Under article 231 of the Constitution and sections 10-15 of CBK Act, a person qualifies to serve as chairman if they hold a masters degree in economics, finance or law. Such a person has to be “knowledgeable” of matters related to CBK’s functions and must have at least 10 years of experience at top management levels in economics, finance or law. “The chairperson shall convene and chair the meetings of the CBK board,” the laws state.

Mr Nyaoga, a managing partner at Mohamed Muigai Advocates, holds a Bachelors and Masters degrees in law from the University of Nairobi. He is a Certified Public Secretary, a Certified Company Director and a member of the London Institute of Directors.

The Chambers and Partners, which ranks outstanding lawyers globally, describes him as “passionate and very skilled litigator”.

The Law Society of Kenya (LSK) says he is an “active and compliant” member who has dedicated 30 per cent of his professional time to banking, finance and securities law since he was admitted to the bar in 1985.

Under the revised rules that the Treasury introduced in March, the CBK chairman, who unlike the Governor lacks security of tenure, will generally oversee the working of the country’s top bank.

As board chairperson, Mr Nyaoga will appraise the performance of the CBK Governor, determine the bank’s policy (other than formulation of monetary policy) and review how the institution uses its resources. Previously, the Governor chaired the CBK board meetings.

The Treasury is also mulling amendments to the CBK Act which, if passed by Parliament, will hand the responsibility of recruiting and shortlisting future governors to board of directors, headed by the chairperson.