Dr Kamau Thugge is the current governor of the Central Bank of Kenya (CBK). He was appointed as governor by President William Ruto on June 19, 2023, and took office on the same day.
Thugge is a veteran economist and banker with over 20 years of experience in the financial sector.
This is his journey as told by WoK.
Early Life
Thugge was born in Nyeri in 1960. He studied at Lenana high school, where he sat for his KCSE in 1976. He then proceeded to Colorado College for his bachelor of arts degree.
His academic journey ended with him acquiring an MAA and Ph.D. in Economics from Johns Hopkins University in the United States.
Thugge’ s first job was at the International Monetary Fund (IMF), where he honed his skills over two decades.
His expertise led him to the heart of Kenya’s economic management when he was appointed as the Principal Secretary of the National Treasury in 2013.
Corruption and Controversy
The 63-year-old’s tenure as principal secretary was cut short in 2019 following his arrest alongside then CS for national treasury Henry Rotich.
They were charged with conspiracy to defraud the government in connection with the construction of the Arror and Kimwarer dams.
The dams were never built, but the government allegedly paid out Sh21 billion to a bankrupt Italian firm. Thugge was later released on bail, and the charges against him were dropped in 2021.
The 2016 National Youth Service (NYS) scandal and the 2018 Eurobond scandal also cast shadows on Dr. Thugge’s reputation. Yet, he stood firm in his defense, asserting his commitment to serving Kenya’s best interests.
A vision for stability
Thugge’s appointment as CBK governor followed recommendations from the Public Service Commission (PSC) and vetting from the parliament.
He beat six candidates to become the 10th CBK governor, succeeding Dr Patrick Njoroge. In the gazette notice, Thugge was elected to serve a term of 4 years, subject to renewal based on performance.
He took office when the Kenyan shilling was trading at sh 140.04 against the US dollar, an all-time low. The currency had depreciated against the Us dollar by 13.4% in just six months.
His first act after assuming office was raising the benchmark lending rate to 10.5%, a record seven-year high, ushering in a new era of expensive bank loans in the country.
He is deputized by Dr. Susan Koech, who was appointed by President William Ruto on March 8, 2023, and took office on the same day.
Koech previously served as the Principal Secretary for Tourism and Wildlife from 2018 to 2023.
Koech and Thugge were key participants in the Amwaror-Kimwarer saga.
Net Worth and Salary
During his vetting by the National Assembly’s Finance and National Planning committee, Dr Kamau Thugge disclosed that he was worth ksh 450 million.
He said that his wealth consisted of an apartment in Westlands, a house in Mombasa, a plot of land in Ridgeways estate on Kiambu Road, and another parcel in Thika Greens as well as company shares and cash equivalents.
Details of his salary as CBK governor are not in the public domain. However, according to The Standard, his predecessor, Dr Patrick Njoroge, took home a monthly salary of over sh 3 million.
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