NAIROBI, Kenya, Oct 9 – The Governor of the Central Bank of Kenya (CBK), Kamau Thugge, has said that there are no plans to impose term limits for Kenyan bank CEOs.
Thugge said during the post-Monetary Policy Committee (MPC) meeting today that the issue is yet to be considered.
Currently, there is no term limit set for Kenyan banks’ chief executives, meaning that they can serve for as long as possible. However, this is not the case for chairmen and independent directors, whose terms are capped at five and eight years, respectively.
Previous CBK Governor Patrick Njoroge first muted the idea of capping CEO tenures, which could have seen a number of top executives sent home, to enhance governance and pump new blood in top management.
Some of the longest-serving Kenyan bank CEOs now include Equity Group CEO James Mwangi, who has been in the position for over 15 years, and Co-operative Bank CEO Gideon Muriuki (over 19 years), among others.
Unlike financial institutions, CEOs of government corporations such as KenGen and Kenya Power, among others, are eligible for a maximum of six years with two terms.
