NAIROBI: Kenyans are for the first time going to witness the appointment of the Central Bank of Kenya (CBK) governor through an open and competitive selection and interview process. This approach is most welcome.
The process will help the Government meet the threshold set by the new constitution that requires public office holders to undergo intense public scrutiny.
While we agree that the office of the CBK Governor currently enjoys enormous powers, perhaps overriding those of the National Treasury and other relevant institutions such as the Monetary Policy Committee, it would be suicidal to introduce another centre of power in the name of Chairman – a political appointee – into the whole matrix.
We hope the new landscape shaping up at the CBK is not going to create unnecessary conflicts already witnessed in other State agencies where the chairman has executive powers that are in conflict with that of the chief executive.
The recent chaos at the Ethics and Anti-Corruption Commission is a case in point.
Given that the CBK is a highly sensitive institution, the Governor must have a good working relationship with the deputy as well as the chairman, who while being a presidential appointee, must be a professional.
When conflicts arise, as they are bound to, then other parties like the National Treasury and an independent monetary policy committee, as well as the donor community - and bodies such as IMF and the World Bank – must step in quickly.
This is to avoid disputes over sensitive matters that have grave ramifications for the economy, such as how to deal with the exchange rate or inflation.
The CBK is an important institution whose decisions should be immune to manipulation from State House or any other authority.
The chairman, governor and two deputy governors, which the new system seeks to create, must have clearly defined responsibilities so as to safeguard the operations of this institution.
We hold the opinion that the new changes at CBK will bring transparency in its workings, remove personality clashes and that the chemistry between individuals occupying these offices must be good.
