Kenya: Andrew Musangi’s Nomination as CBK Board Chairperson Gets National Assembly’s Approval

The National Assembly has given its approval for the nomination of Andrew Musangi as the next chairperson of the Central Bank of Kenya (CBK) board of directors, following the prior endorsement by the Joint National Assembly and Senate Finance Committee.

The final step for Musangi to assume this position is the approval of the Senators, who are currently on recess. His approval will be a top priority when they resume their sittings next week.

Majority Leader Kimani Ichung’wah expressed his confidence in Musangi’s suitability for the role, emphasizing the importance of maintaining integrity in the position. He commended Musangi as a qualified professional who is well-suited to lead the CBK.

Buuri MP Mwithirania Mugambi highlighted Musangi’s capabilities in shaping fiscal and monetary policies at the Central Bank. He encouraged Musangi to adapt quickly to changes and developments in fiscal development.

Ugenya MP David Ochieng urged the nominee to address the current crisis of a dollar shortage, which is affecting foreign trade and deterring potential investors.

Once approved, Musangi will succeed Mohammed Nyaoga, who completed his tenure as CBK board chairperson in June.

The CBK board of directors oversees the bank’s functions, formulates policies (excluding monetary policy), and reviews performance. It consists of eleven members, including the Chairperson, the Governor, the Permanent Secretary to the National Treasury, and eight non-executive directors appointed by the President.

During his vetting, Musangi recommended increased oversight and scrutiny of the Central Bank of Kenya, particularly concerning the Appropriation in Aid (A-I-A) funds. These funds, collected by state agencies and parastatals for their operations, are not part of the National Treasury and thus not subject to oversight.

Musangi argued that transparency should be enhanced through scrutiny of A-I-A funds by the CBK. He also called for the strengthening of the Special Bank Investigating Unit (SPIU) and General Bank Supervision (GSU) to expedite investigations into fraudulent bank activities, such as withdrawals and money laundering, which often take months to resolve.