EDITORIAL: Search for CBK governor should be transparent

Opinion and Analysis

By BUSINESS DAILY

As the Public Service Commission (PSC) starts to pick the final shortlist of the persons to succeed Njuguna Ndung’u as Central Bank of Kenya governor today, it’s critical for the panel to stick to merit.

Selection of high profile public servants, including principal secretaries and board chairpersons, has been faced with bias claims and alleged influence by politicians.

The process of hiring the central bank chief should be seen to be free of any interference amid jockeying by politicians to push for their favourite candidates.

This is the first time the central bank chief will be chosen through open competition. Previous chiefs were named by the president without a formal application process.

We need a governor whose track record is already known and one who will maintain the bank’s policy on price and exchange rate stability as well as police the banking sector without interference.

This can only happen if the person is picked transparently and not through the influence of third parties that the governor may pledge allegiance to.

Prominent economists at the World Bank and the International Monetary Fund (IMF) were locked out of the race for three top positions at the Central Bank of Kenya (CBK) despite their long experience in policy making. This has led to unsupported allegations that the shortlist was being done with the preferred candidate in mind.

Five candidates have been shortlisted for the position of CBK governor. Present deputy governor, Dr Haron Sirima, the Economic Affairs director at the Treasury, Dr Geoffrey Ngungi Mwau and former Planning permanent secretary and one time CBK deputy governor Dr Edward Sambili are among those shortlisted to replace Prof Ndung’u who stepped down on March 3 after serving the maximum of two four-year terms.

Dr Patrick Ngugi Njoroge and Dr Peninah Wanjira Kariuki also made the cut and will battle it out with the three veterans.

Names of the top three will be submitted to President Uhuru Kenyatta by mid-April to pick his preferred candidate. His choice would need to be approved by Parliament.

This process clearly shows that the process of tapping the governor is a political one. But we don’t need a governor who will politicise issues.

And Kenya can only guard against this fear by ensuring that names handed to the political class have been selected with merit.

Therefore, the PSC must fulfil its promise to make sure the new governor is well-known and respected through a transparent process.