By Peter Ochieng
Central Bank of Kenya (CBK) governor Dr. Kamau Thugge is Africa’s Central Bank governor of the year.
He was named the African Central Bank governor of the year by the African Banker Magazine, at the African Banker Awards event in Nairobi, during the Annual Meeting of the African Development Bank (AfDB) on Tuesday night.
Dr Thugge was credited for succesfully stabilizing markets and bolstering confidence in Kenya’s economy, despite the considerable challenges faced by central bank governors, not only in Africa but globally.
“This year has presented significant challenges for central bank governors worldwide, and we across the continent have not been immune to the economic and geopolitical turmoil. Despite the challenges, during your tenure in office, you have successfully stabilised markets and instilled confidence in the Kenyan economy,” noted the African Banker.
“The markets have responded by showing their faith and support for the Kenyan shilling, and the banking sector has demonstrated remarkable resilience, positioning itself as a true regional leader.”
Thugge was appointed CBK governor in June 2023, taking over from the retired Patrick Njoroge. While expressing gratitute for the award, Thugge said his first mission upon assuming office as CBK boss was to put in measures to stabilise the depreciating Kenyan shiling against the USA dollar.
“My priority, therefore, was to address the inflationary pressures and the rapid depreciation of the Kenya Shilling. I convened my first Monetary Policy Committee (MPC) meeting on June 26, 2023, one week after my appointment as CBK governor, and the Committee agreed to raise the Central Bank Rate (CBR) by 100 basis points, the highest single rate increase since July 2015. This was followed by another sharp rate increase in December 2023 of 200 basis points, and a further 50 basis points in February 2024, thereby raising the CBR cumulatively by 350 basis points to 13.00 percent. This tight monetary policy stance continues to anchor inflationary expectations and addressing any residual exchange rate pressures,” said Thugge.
Going forward, the CBK boss said, Kenya’s banking sector remains sound and stable. “Turning to financial stability, Kenya’s banking sector remains sound and stable, with adequate capital and liquidity buffers. Taking cognizance of the existential threat of climate change and working together with our development partners including the International Monetary Fund and the European Investment Bank, we have embarked on our vision of greening the banking sector. Towards this end we have issued the draft Kenya Green Finance Taxonomy (KGFT) for public consultation. The KGFT will serve as a reference for Kenya’s transition to being a green economy.”
Now in their 18th year, the African Banker Awards celebrates institutions and individuals who have significantly contributed to the reform, modernization, and expansion of Africa’s banking and financial sector, promoting the continent’s sustained economic growth.