Business

By Edwin Nyarangi | 22 hours ago

Parliament has approved the appointment of Gerald Arita as the Deputy Governor of the Central Bank of Kenya. The House said his 36 years of experience at the bank in various capacities had prepared him to take up the position.

A report submitted to the House by the National Assembly Finance Committee Chairperson Kimani Kuria and the Senate Finance Committee Vice Chair Tabitha Mutinda indicated that the joint vetting committee had found Arita suitable for the role.

Kimani and Mutinda informed the National Assembly and the Senate, respectively, that the vetting committee had determined that Arita, who was nominated by President William Ruto, possessed the necessary experience to help reform financial institutions in the country.

Arita, who appeared before the joint Senate and National Assembly Finance Committees chaired by Mandera Senator Ali Roba and Kuria, respectively, last week, highlighted one of his greatest achievements: his role in the establishment of mobile money banking.

The nominee told the joint committees that then-Safaricom CEO Michael Joseph had approached him while he served as Director of Bank Supervision to present the idea of a system allowing money transfers via mobile phones.

Clear roles

He said he had advised then-Finance Minister John Michuki on the importance of the proposal, which was subsequently adopted.

“While I served as the Director of Bank Supervision at the Central Bank, I participated in giving Safaricom the green light to establish mobile money services by advising then-Finance Minister John Michuki on the importance of allowing this innovation. It has since revolutionised how money transactions are carried out in the country,” said Arita.

Kakamega Senator Boni Khalwale asked Arita how he would avoid conflicts with Central Bank Governor Kamau Thugge, given his long career at the bank, having joined as a management trainee in 1988, and whether he might adopt a know-it-all attitude.

“The Governor of the Central Bank is responsible for allocating duties to the two deputy governors based on their experience and expertise. I do not foresee any conflict since each of us has clearly defined roles,” Arita responded.

Tamper-proof

Turkana South MP John Ariko asked him what new contributions he would bring to an institution he had served for over three decades and how secure the printing of Kenyan currency is, especially as it is currently done in Germany.

Arita said he would ensure improved coordination and provide more liquidity in the market.

He assured the committee that the printing of currency is secure and tamper-proof.

Arita also disclosed to the joint Senate and National Assembly vetting committee that his net worth is Sh169 million.

He noted that he had not revalued his home, built 20 years ago, at current market rates. He acquired the land for Sh5 million and constructed the house at a cost of Sh20 million.