Shake-up looms as CBK hires eight directors

Money Markets

Central Bank of Kenya governor Njuguna Ndung'u said the new structure will help “career path tracking that was absent in the CBK.” PHOTO | FILE 

By GEORGE NGIGI, gngigi@ke.nationmedia.com

In Summary

• Central Bank has advertised eight directorships and two departmental head positions, indicating that it was responding to a changing business environment.
• Senior CBK officials said the restructuring had arisen from recommendations by consultancy firm, PricewaterhouseCoopers (PwC).
• Njuguna Ndung’u, the CBK governor, said the bank was not planning to lay off staff, indicating that the current holders of the advertised positions will have to apply afresh.

The Central Bank of Kenya (CBK) is hiring eight directors in a restructuring process that could cause the exit of a large number of senior officials from the institution.

The bank last Friday advertised eight directorships and two departmental head positions, indicating that it was responding to a changing business environment.

Senior CBK officials said the restructuring had arisen from recommendations by consultancy firm, PricewaterhouseCoopers (PwC).

“We have identified high-level functions that are necessary to fulfil the CBK’s mandate and have developed new structures that are in line with our mandate and business environment. We are now at the stage of populating them,” the bank said in an email response to our questions.

Among the positions advertised is that of director of strategic management, currently held by Rose Detho, who previously served as the director of the Deposit Protection Fund before moving to her current docket in April this year.

Ms Detho is one of the longest serving officials at the CBK, having joined the institution in 1988.

The CBK is also hiring the director of currency services, a position currently held by Paul Wanyagi in an acting capacity.
Njuguna Ndung’u, the CBK governor, said the bank was not planning to lay off staff, indicating that the current holders of the advertised positions will have to apply afresh.

“The bank does not envisage staff lay-offs under the restructuring process but sees the value of placing staff in line with their core competencies to enhance productivity and attract new talent for new and emerging areas of its core mandate,” said Prof Ndung’u who is set to retire in March next year.

The central bank governor’s tenure of office is capped at two terms of four years each. This means the incoming senior officials will have to settle in fast.

Information carried in the newspapers last week shows that the bank has created directorships for public relations and communication, information communications and technology, enterprise risk management, payment systems, financial systems oversight and procurement and logistics.

READ: Parliament to get say in hiring central bank governor

Some of the dockets created have serving heads, raising queries on how they will fit in the new management structure.

Samson Burgei currently serves as the head of communications while Stephen Nduati is head of national payment system.

The changes will see the CBK’s top management team expand to 20 directors if existing positions are retained.

The CBK has 13 directors plus a deputy governor and the governor. The deputy governor is in charge of operations while the governor is the chief executive officer.