CBK gets full board af­ter close to two-year wait

The Star (Kenya) - - News Business - WEITERE MWITA @MwitaMartin

Pres­i­dent Uhuru Keny­atta has fi­nally ap­pointed five mem­bers to the Cen­tral Bank of Kenya board end­ing a close to two years vac­uum at the pow­er­ful in­sti­tu­tion.

The di­rec­tors are Rachel Bessie Dzombo, Samson Cherutich, Ravi Ru­parel, Delius Kar­iuki and Char­ity Selina Kisotu.

Un­der a Kenya gazette no­tice num­ber 9235 dated Novem­ber 3, Ru­parel, Kar­iuki and Kisotu’s ap­point­ment came into ef­fect on Novem­ber 4, 2016. The three will serve on the board for four years.

Dzombo and Cherutich will start work to­mor­row (De­cem­ber 1), and will also sit on the board for the next four years.

The term of the im­me­di­ate for­mer di­rec­tors ended in March 2015. Par­lia­ment ap­proved the ap­pointees last month.

The Pres­i­dent ap­pointed lawyer Mo­hammed Nyaoga as CBK chair in June 2015, but he has been with­out a full board, rais­ing con­cerns that lack of a prop­erly con­sti­tuted board was un­der­min­ing the over­sight of the bank’s ex­ec­u­tive per­for­mance.

This is in the wake of re­cent de­vel­op­ments in the bank­ing sec­tor where three in­sti­tu­tions – Chase Bank, Im­pe­rial Bank and Dubai Bank – were placed un­der re­ceiver­ship, the sus­pen­sion of six Na­tional Bank of Kenya man­agers, and the cap­ping of in­ter­est rates.

In an ear­lier in­ter­view with the Star, Nyaoga had dis­missed claims that lack of a full board had hurt op­er­a­tions at the bank­ing in­dus­try reg­u­la­tor.

“Su­per­vi­sion and over­sight are go­ing on with­out any ef­fects. Most of the man­age­ment de­ci­sions don’t need a board to be im­ple­mented,” Nyaoga told the Star in an in­ter­view on May 30. Un­der the CBK Act, the board is charged with de­ter­min­ing the pol­icy of the bank, keep­ing un­der con­stant re­view the per­for­mance of the bank, and con­stantly re­view­ing the per­for­mance of the gover­nor.

It is also charged with de­ter­min­ing whether the pol­icy state­ments made are con­sis­tent with the bank’s pri­mary func­tion and pol­icy ob­jec­tives.

The board con­sists of the chair­per­son, gover­nor, PS to the Trea­sury or his rep­re­sen­ta­tive, who is a non -vot­ing mem­ber, and eight other non-ex­ec­u­tive di­rec­tors. The chair­per­son is sup­posed to con­vene meet­ings of the board not less than once in ev­ery two months, or when­ever the busi­ness of the Bank so re­quires.

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