Why Ndung’u’s tenure at Central Bank is largely seen as big success

CBK Governor Njuguna Ndung’u

Being a central bank governor is one of the most difficult assignments to undertake, particularly in an economy like Kenya’s. On one hand, the economy has a lot of potential to grow, but on the other, many Kenyans are poor. This means that any rise in the price of basic commodities would bring much discontent and suffering, yet at the same time, strong credit growth — which is inflationary by nature — is necessary to bring the masses out of poverty.

Navigating these two extremes is what a central bank governor has to do. It is an extremely tough task, and sometimes ‘accidents’ happen when managing this balance. Professor Njuguna Ndung’u, like other governors, did make policy mistakes. But his tenure at the bank will be seen as a big success.