Musangi now a step away from appointment as new Central Bank chairperson

POLICY: Andrew Musangi is now a step away from appointment as the new Central Bank of Kenya chairman having undergone parliamentary vetting on Tuesday.

Musangi, expected to replace Mohamed Nyaoga barring any last-minute hitches, has a resume that ticks all of President William Ruto’s to-do list. 

During his inauguration last year, Ruto prioritised the revival of the economy in a post-Covid era, through debt restructuring and streamlining of the Public Private Partnership. The move is expected to yield fruits, especially in the affordable housing strategy where he is pinning hopes to create employment especially for the youth.

Silver bullet

 A graduated with a Bachelor of Laws Degree from the University of Hull (UK) in 1993, and admitted to the Bar in Kenya in 1995, Musangi’s area of expertise includes among others, Debt Recovery and Restructuring, Securities, Insurance litigation and PPPs, which Ruto has identified as the silver bullet the revive the economy. 

In addition to his legal career, Musangi has extensive corporate experience, having served as a strategic adviser to several corporate clients both local and multinational. In 2021, he took up seats on the boards of Centum Real Estate (Centum RE) as well as its parent company Centum Investment.

 His role at Centum involved overseeing the running of a multi-billion-shilling business that owns large chunks of land in Nairobi, Mombasa, Kampala and Uganda. This experience could be invaluable in understanding the real estate market, land acquisition and property development, all of which are crucial aspects of the affordable housing strategy.  President Ruto plans to provide low-cost housing units for Kenyans, especially those in the low-income bracket through the affordable housing strategy.

The units will be distributed in Nairobi, Machakos, Nyamira, Nakuru and Homa Bay counties.  This will see the government provide free serviced land, tax incentives and offtake agreements to private developers who will build the houses, with beneficiaries paying an initial 10 per cent deposit and a monthly rent for 25 years to own the houses.

Musangi’s extensive experience in corporate and commercial law is also expected to play a crucial role in supporting President Ruto’s tap into the securities market through the recently launched DhowCSD, a digital facility that aims to eliminate barriers for Kenyans to trade in the financial market.