Former Treasury PS Kamau Thugge was recently nominated to replace Patrick Njoroge as the of the Central Bank of Kenya (CBK).
The Head of Public Service Commission Felix Koskei announced in a circular on Monday, May 15, 2023.
“President William Ruto, has, on the recommendation of the Public Service Commission, nominated Dr Kamau Thugge for appointment as the Governor of the Central Bank of Kenya,” a statement read.
Thugge is the senior adviser and Head of Fiscal Affairs and Budget Policy at the State House, making a comeback after being thrown out of the National Treasury under a cloud of corruption charges.
He was forced out of his position at the National Treasury over his alleged role in the multibillion-shilling Kimwarer and Arror dams’ construction in Elgeyo Marakwet.
Thugge was cleared of any wrongdoing in 2021.
Kamau Thugge profile in summary
- He has been working until now as the President’s fiscal affairs and budget policy advisor
- He has a Masters’ Degree and Ph.D. in Economics both from John Hopkins University
- He has previously worked in the Ministry of Finance as Permanent Secretary, head of the Fiscal & Monetary Affairs Department, Economic Secretary & Senior Economic Advisor.
- He also worked with the IMF as an Economist, Senior Economist & Deputy Division Chief.
- He helped work on the Public Finance Management Act, 2012 & The Commission on Revenue Allocation Act, 2011.
- He was fired from the PS on allegations of corruption which were later dropped.
Kamau Thugge biography
Kamau Thugge is a Kenyan economist and public servant.
He has previously held a number of senior positions in the Kenyan government, including Principal Secretary at the National Treasury, Secretary of the Kenya Ministry of Finance and Secretary of the Central Bank of Kenya.
Thugge was born in 1960 in Nyeri, Kenya.
He attended the University of Nairobi, where he earned a Bachelor of Arts degree in Economics in 1982.
He then went on to earn a Master of Arts degree in Economics from Johns Hopkins University in 1984 and a Doctor of Philosophy degree in Economics from the same university in 1990.
After completing his education, Thugge worked as an economist at the International Monetary Fund (IMF) from 1990 to 1997.
He then returned to Kenya to work as an economist at the Ministry of Finance from 1997 to 2002. In 2002, he was appointed as the Director of Economic Affairs at the Kenya Revenue Authority (KRA).
Thugge served in this position until 2007, when he was appointed as the Principal Secretary of the National Treasury by former President Uhuru Kenyatta.
In short, he is a respected economist and public servant who has played a major role in shaping Kenya’s economic policies over the past two decades. He is also a strong advocate for good governance and transparency in the public sector.
Thugge is also a member of the board of directors of a number of private companies and organizations. He is also a Fellow of the Kenya Institute of Management and a member of the Economic Society of Kenya.
He is a married father of two children. He is a keen golfer and enjoys reading and traveling.
Kamau Thugge education
He holds a Bachelor of Arts degree in Economics from the University of Nairobi, a Master of Arts degree in Economics from Johns Hopkins University in 1984 and a Doctor of Philosophy degree in Economics from the same university.
Kamau Thugge career
Prior to his appointment as the governor of CBK, he worked as President’s fiscal affairs and budget policy advisor.
He previously served as the Principal Secretary of Treasury until 2018 when he was fired on allegations of corruption which were later dropped.
Prior to that, Thugge worked as a Senior Economic Advisor in the Ministry of Finance from the year 2010.
He has also worked at the International Monetary Fund (IMF) in various capacities for over 21 years.
He was the Head of the Fiscal and Monetary Affairs Department, Treasury between 2004 to 2005, and the Economic Secretary and Head of Economic Affairs Department, Treasury between 2005 and 2008.
He has represented the Permanent Secretary, Finance on the Boards of the Central Bank of Kenya, the Monetary Policy Committee of the Central Bank of Kenya, the Kenya Revenue Authority and the Capital Markets Authorities.
Kamau Thugge age
Kamau Thugge was born on February 25, 1958. He is currently 65 years old.
Central Bank of Kenya (CBK) governors
Thugge will be the tenth boss of the banking regulator which was established by an Act of Parliament of March 24, 1966.
Below is a simplified list of past governors of the Central Bank of Kenya and the years they served;
- Dr. Leon Baranski (1966-1967)
- Mr. Duncan Ndegwa (1967-1982)
- Mr. Philip Ndegwa (1982-1988)
- Mr. Eric Kotut (1988-1993)
- Mr. Micah Cheserem (1993-2001)
- Mr. Nahashon Nyaga (2001-2003)
- Dr. Andrew Mullei (2003-2007)
- Prof. Njuguna Ndung’u (2007-2015)
- Patrick Ngugi Njoroge (2015-2023)
Roles of Central Bank of Kenya governors
The Governor of the Central Bank of Kenya (CBK) is the chief executive officer of the bank and is responsible for its overall management.
The Governor is also the bank’s official spokesperson.
The Governor and Deputy Governors serve for a four-year term and are eligible for a further appointment of one additional term.
The Governor is responsible for the following:
- Formulating and implementing monetary policy
- Supervising and regulating commercial banks and other financial institutions
- Managing the country’s foreign exchange reserves
- Issuing currency notes and coins
- Providing banking services to the government and other public institutions
- Promoting financial stability and inclusion
The Governor is appointed by the President of Kenya, subject to the approval of Parliament. The Governor must be a person of high integrity and experience in financial matters.
Here are some of the specific roles of the Governor of the CBK;
1. Formulating and implementing monetary policy
The Governor is responsible for setting the interest rates that commercial banks charge each other for loans.
This is done through the Monetary Policy Committee (MPC), which is chaired by the Governor.
The MPC meets eight times a year to review the economic situation and make decisions about interest rates.
2. Supervising and regulating commercial banks and other financial institutions
The Governor is responsible for ensuring that commercial banks and other financial institutions are operating safely and soundly.
This includes ensuring that they have adequate capital and that they are not taking on too much risk.
The Governor also has the power to intervene in the operations of a financial institution if it is deemed to be a threat to the stability of the financial system.
3. Managing the country’s foreign exchange reserves
The Governor is responsible for managing the country’s foreign exchange reserves. This includes buying and selling foreign currencies in order to maintain a stable exchange rate.
The Governor also has the power to intervene in the foreign exchange market if it is deemed necessary to protect the interests of the country.
4. Issuing currency notes and coins
The Governor is responsible for issuing currency notes and coins. This includes printing the notes and coins and ensuring that they are distributed to banks and other financial institutions.
The Governor also has the power to withdraw currency notes and coins from circulation if they are deemed to be counterfeit or unfit for use.
Providing banking services to the government and other public institutions
The Governor is responsible for providing banking services to the government and other public institutions.
This includes collecting taxes, making payments to government employees, and managing the government’s finances.
5. Promoting financial stability and inclusion
The Governor is responsible for promoting financial stability and inclusion.
This includes ensuring that the financial system is resilient to shocks and that everyone has access to financial services.
The Governor does this by working with the government, commercial banks, and other stakeholders.