Who Is Delaying The Appointment Of The Second CBK’s Deputy Governor

Questions surround the delay in the appointment of the second deputy governor of the Central Bank of Kenya (CBK) as required by law following the appointment of Susan Koech on March 10, 2023.

Adding to the controversy, the Auditor-General Nancy Gathungu has also raised a red flag over the delay in appointment of the occupant of office that has now been vacant for close to one year.

The CBK had for years operated in breach of the law requiring the regulator to have two deputy governors until the appointment of Susan Koech on March 10, 2023.

The compliance with the law was, however, short-lived after Sheila M’Mbijjewe retired from her position on June 17, 2023.

“As at the time of audit in September 2023, the Bank continued operating with one Deputy Governor,” the Auditor-General pointed out.

The country also briefly had two deputy governors in 2015 when Ms M’Mbijjewe served together with Haron Sirima, who quit the CBK in October 2015.

The CBK Act, states that “There shall be two deputy governors who shall be appointed by the President through a transparent and competitive process and with the approval of Parliament.”

In a report on the CBK for the financial year ending June 2023, Ms Gathungu raised concern that “There was no amendment to the Central Bank of Kenya Act to provide for a reduction in the number of Deputy Governors.”

Speculations

There have been speculations about the delay both from within the CBK’s corridors and political spheres as to why an appropriate candidate has not been found to co-work with Ms Koech despite the vacancy having been advertised ages ago.

This had not missed the media eye rife with speculation that a new entrant would water down the assumed influence of some occupants at CBK.

In a gossip column published in the Nation a few weeks ago, it’s claimed the recruitment of the new deputy had allegedly been halted over what seems like the fear of rivalry.

“Is a deputy boss at a State agency influencing the delay in appointment of a co-deputy? It’s emerging that almost six months after the position was advertised,shortlisting of candidates stalled at the behest of the powerful forces within government. The key agency that has regulatory powers is required to have one CEO and two deputies. Howev-er,since the current deputy feels that the other is likely to take some powers; the third party agency that was required to conduct the recruitment was instructed to keep off the matter for now. It’s just a matter of time before those who had applied for the vacant position make their frustrations known according to insiders in government.”

Newspaper cut.

The appointment of Ms Koech was to fix the  double legal hitch at the banking regulator.

The hiring of the second deputy governor partially corrected the legal breach that had been repeatedly raised by the Auditor-General.

The law enacted in 2015 demands that the executive team at the CBK be composed of the governor and two deputies.

Former President Uhuru Kenyatta ignored calls for the CBK to have two deputy governors during his nearly 10-year tenure.

With one of the second deputy governor position yet to be filled, the open question that remains beyond the speculations is who is hindering the recruitment and why, a legal breach still remains unsolved with one position  being empty.