This is how politicians have arm-twisted CBK Governor and forced him change mind

Central Bank Governor Patrick Njoroge

The members of parliament have been arm-twisting the Central Bank (CBK) Governor Patrick Njoroge and threatening to remove him if he fails to publish controversial banking regulations until he finally bowed to their pressure.

Prof Njoroge has finally acceded to MPs’ demand for him to publish banking regulations on customer deposits and withdrawals after months of a push and pull and threats to have him removed from office.

The governor is against the regulations because he believes MPs will tamper with them to allow huge capital withdrawals that he fears will fan money laundering and the financing of terrorism.

Currently, huge deposits and withdrawals require the signing of forms on either the source or the intended use of the money.

Dr Njoroge was to appear on Tuesday before the House Committee on Implementation to explain why he had not done so.

He, however, sent a written apology saying he was consulting the Committee on Delegated Legislation on the formulation of the regulations.

“We are in the process of implementing section 65 of Finance Act, 2018 and are currently consulting the committee. In line with these consultations, we are unable to appear before you and are seeking two weeks,” Dr Njoroge told the Implementation committee, chaired by Narok North MP Moitalel ole Kenta.

But even as Dr Njoroge showed commitment, Mr Kenta directed that he appears before the committee within 14 days or face sanctions.

“The governor is saying that they will be implementing the law and they will meet us in two weeks. Considering the new development, we will liaise with the Delegated Legislation committee and ensure the governor implements the law,” Mr Kenta told the members.

Last week, MPs said the CBK governor’s failure to publish the regulations as provided for in the Banking Act, which was amended in August 218 through the Finance Act, amounted to contempt of parliament and reason enough for him to be sent home.

“What this man is doing is to undermine the authority of parliament and the executive. The President assented to this law. He should resign because he has no confidence in the authority of this House. This House does not act in vain and must be respected accordingly,” Mr Kenta said.

Leave a Reply

Your email address will not be published. Required fields are marked *