NAIROBI: Kenya’s parliament on Thursday approved the appointment of U.S.-educated economist Patrick Njoroge, an IMF adviser, as governor of the central bank.
Njoroge, who is adviser to one of the International Monetary Fund’s deputy managing directors, was nominated by President Uhuru Kenyatta after the last governor’s term ended in March.
Kenya’s central bank raised rates last week for the first time since 2011 in response to a weakening currency and rising inflation. It increased the benchmark lending rate by 150 basis points to 10 percent.
The shilling has hit its lowest levels since November 2011 and inflation has climbed to around 7 percent, near the top of the central bank’s target range of 2.5-7.5 percent.
Njoroge, 54, this week told a committee of lawmakers vetting his appointment that the central bank needed to do a better job of showing it had a grip on inflation, something that would help commercial banks lower lending rates. He can serve a maximum of two four-year terms.
Parliament also approved the appointment of lawyer Mohammed Nyaoga as chair of the board of the central bank and Sheila M’mbijiwe as a second deputy governor.
Haron Sirima, who was initially tipped as favourite for the governor’s job, is already in place as the other deputy governor.