The Central Bank (Amendment) Bill, 2024

Background

The Central Bank (Amendment) Bill, 2024 aims to align the Central Bank Act (Cap. 491) with the Constitution of Kenya, 2010. Currently, Section 13 of the Act requires only the National Assembly to approve the nomination of the Governor, whereas the nominations for the Board Chairperson and Deputy Governors require approval from both Houses of Parliament. The Bill also seeks to enforce strict constitutional integrity standards on the Bank's leadership and remove outdated statutory references to local authorities.

Key Amendments

• Approval of Governor's Nomination (Section 13): The Bill amends Section 13(1) of the principal Act by replacing 'the National Assembly' with 'Parliament'. This ensures that the Senate also participates in the approval process for the Governor, who determines monetary policies that directly impact county governments.
• Designation of State Offices (Sections 11 and 13): The offices of the Board Chairperson (new Section 11(2B)) and the Governor (new Section 13(1A)) are officially designated as State offices in accordance with Article 260(q) of the Constitution.
• General Disqualifications (Section 14): Section 14(1)(a) is amended to disqualify any member of the National Assembly, the Senate, or a County Assembly from being nominated as Chairperson, Governor, Deputy Governor, or Director of the Bank. This replaces the outdated reference to members of defunct local authorities under the old Local Government Act.

New Obligations

• Constitutional Integrity Compliance: By designating the positions of Chairperson and Governor as State offices, the holders of these offices are legally required to comply with the stringent leadership, integrity, and ethical requirements applicable to State officers under Articles 73, 74, 75, 76, 77, and 78 of the Constitution.