Another Kibaki appointee faces wrath of MPs

By Alex Ndegwa

President Kibaki has suffered setbacks with some of his public appointments challenged and still, another of his high-profile appointee is under threat.

Parliament’s Public Accounts Committee’s indictment of Central Bank of Kenya Governor Njuguna Ndung’u alongside former Finance Minister Amos Kimunya over controversial printing of banknotes threatens the tenure of the chief banker the President fought hard to retain.

It has raised the stakes because were Prof Ndung’u, whose reappointment by Kibaki sparked a storm last year, to be removed from office, the President will no longer make such a unilateral appointment.

Competitive process

Through the Finance Act 2012, which the President assented in April and amendments to the Central Bank of Kenya Act opened up subsequent appointment of the governor to a competitive process.

Sections 47 of the Act, which also provided for parliamentary approval of the nominee for governor, is deemed to have come into operation on May 2, which means future appointments are subject to the new provisions.

“There shall be a governor who shall be appointed by the President through a transparent and competitive process and with the approval of Parliament,” the amendment to section 13 of the CBK Act says.

It would be a coup against Kibaki considering his re-appointment of Ndung’u for a second term last year sparked outrage.

But the President stood his ground stating his decision was guided by Section 11(2) of the CBK Act, which gives him the authority to appoint the CBK Governor, his deputy and non-executive directors.

It is after this standoff that MPs moved to effect the changes. Apart from the Governor, the appointment of the bank’s chairperson and deputy governors by the President is also through a transparent and competitive process and with the approval of Parliament.

Finance Minister Njeru Githae has incorporated the provisions in the Central Bank (Amendment) Bill, 2012, which is before Parliament.