Kamau Thugge

Kamau Thugge (born 1960) is a Kenyan economist, banker, and the tenth and current governor of the Central Bank of Kenya. He assumed office on 19 June 2023.^[1]

Kamau Thugge
Born	1960 (age 63–64) Nyeri, Kenya
Alma mater	Colorado College Johns Hopkins University
Occupation(s)	Economist, banker
Years active	1985 — present
Known for	Fiscal discipline
Title	Governor Central Bank of Kenya

Background and education

Thugge was born in Nyeri, Kenya, in 1960. He studied in Kenya for his pre-university education. He holds a Bachelor of Arts degree from Colorado College. He obtained his Master of Arts and Doctor of Philosophy degrees in economics from Johns Hopkins University in the United States.^[1][2]

Career

International Monetary Fund

Out of graduate school, Thugge began a career at the International Monetary Fund (IMF), that spanned 20 years. While there, he was reportedly responsible for designing policies for dealing with the unsustainable debt of developing countries, a process referred to as the Heavily Indebted Poor Countries Initiative (HIPC).^[3] For some time, during and following the Global Financial Crisis, he served as the Chief of Mission to Botswana and Lesotho.^[2]

Government of Kenya

Following his employment with the IMF, he was hired by the Kenyan government, serving in the Ministry of Finance in various roles, including as the Director of Fiscal and Monetary Affairs, as Economic Secretary and as Senior Economic Advisor. He also served as Principal Secretary at the Finance Ministry and as Senior Advisor to the President of Kenya.^[2][3]

Central Bank of Kenya

During the confirmation process as Governor of the Central Bank of Kenya, Dr. Thugge proposed the establishment of a government infrastructure bond in United States dollars, set up locally and open to Kenyan citizens and regional nationals. This came in the wake of dollar scarcity in Kenya and the high interest rates demanded by issuers of Eurobonds outside of Kenya. His views directly contrasted with those of his predecessor Patrick Njoroge.^[4]

In October 2023, while responding to questions from a parliamentary committee on finance and national planning, Dr. Thugge said the decline in international reserves was caused by an overvaluation of the shilling against the dollar^[5] This was against the backdrop of a gradual reduction in import cover from 5.5 months to 3.7 months. He cited data from the Bretton Woods Institutions (IMF & World Bank) which put the overvaluation of the shilling in the range of 20-25 percent.^[6] According to Dr. Thugge, the attempt to artificially maintain a strong exchange rate has come at the cost of losing vital international reserves.^[7]

See also

• Governor of the Central Bank of Kenya

References

1. Brian Ambani (19 June 2023). "Kamau Thugge takes over as Central Bank Governor". Daily Nation. Nairobi, Kenya. Retrieved 19 June 2023.
2. Central Bank of Kenya (19 June 2023). "Appointment of Governor Dr Kamau Thugge" (PDF). Central Bank of Kenya. Nairobi, Kenya. Retrieved 21 June 2023.
3. Dominic Omondi (22 May 2023). "Kamau Thugge: Adept economist must deal with high-voltage politics to deliver in CBK role". Business Daily Africa. Nairobi, Kenya. Retrieved 21 June 2023.
4. Kepha Muiruri (1 June 2023). "CBK chief differs with Kamau Thugge on issuing local dollar bond". Business Daily Africa. Nairobi, Kenya. Retrieved 21 June 2023.
5. Edwin Mutai (25 October 2023). "Kamau Thugge: Kenya paying the price for overvalued shilling". Business Daily Africa. Nairobi, Kenya. Retrieved 30 October 2023.
6. "Weak shilling to hit Kenyans' pockets harder - People Daily". www.pd.co.ke. 25 October 2023. Retrieved 30 October 2023.
7. Tongola, Mate. "More demand for the dollar to blame for a weakening shilling- Kamau Thugge". The Standard. Retrieved 30 October 2023.