Kamau Thugge

{{Infobox person

| name = Kamau Thugge

| image =

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| birth_name =

| birth_date = {{Birth date and age|1957|08|01}}

| birth_place = Nyeri, Kenya

| death_date =

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| alma_mater = {{unbulleted list |Colorado College |Johns Hopkins University}}

| occupation = Economist, banker

| years_active = 1985 — present

| relatives =

| known_for = Fiscal discipline

| networth =

| title = Governor
Central Bank of Kenya

}}

Kamau Thugge (born 1st August, 1957) is a Kenyan economist, banker, and the tenth and current governor of the Central Bank of Kenya. He assumed office on 19 June 2023.{{cite web| work=Daily Nation | url=https://nation.africa/kenya/business/kamau-thugge-takes-over-as-central-bank-governor-4275484 |title=Kamau Thugge takes over as Central Bank Governor |date=19 June 2023 |author=Brian Ambani | access-date=19 June 2023 |location=Nairobi, Kenya}}

Background and education

Thugge was born in Nyeri, Kenya, in 1957. 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.{{cite web|work=Central Bank of Kenya |date=19 June 2023 | url=https://www.centralbank.go.ke/uploads/press_releases/780195609_Press%20Release%20-%20Appointment%20of%20Governor%20Dr%20Kamau%20Thugge.pdf |

title=Appointment of Governor Dr Kamau Thugge |author=Central Bank of Kenya |access-date=21 June 2023 |location=Nairobi, Kenya}}

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).{{cite web|work=Business Daily Africa |title=Kamau Thugge: Adept economist must deal with high-voltage politics to deliver in CBK role |date=22 May 2023 |access-date=21 June 2023 | url=https://www.businessdailyafrica.com/bd/lifestyle/profiles/kamau-thugge-armed-with-a-good-cv-he-has-high-politics--4242524 |

author=Dominic Omondi | location=Nairobi, Kenya}} For some time, during and following the 2008 financial crisis, he served as the Chief of Mission to Botswana and Lesotho.

=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.

=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.{{cite web| url=https://www.businessdailyafrica.com/bd/economy/cbk-chief-differs-with-thugge-on-issuing-local-dollar-bond--4253858 |

title=CBK chief differs with Kamau Thugge on issuing local dollar bond |work=Business Daily Africa |date=1 June 2023 | author=Kepha Muiruri |access-date=21 June 2023 | location=Nairobi, Kenya}}

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{{cite web |

url=https://www.businessdailyafrica.com/bd/economy/kamau-thugge-kenya-paying-the-price-for-overvalued-shilling--4412378 | title=Kamau Thugge: Kenya paying the price for overvalued shilling

|work=Business Daily Africa |date=25 October 2023 |author=Edwin Mutai |access-date=30 October 2023 |location=Nairobi, Kenya}} 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.{{Cite web |date=2023-10-25 |title=Weak shilling to hit Kenyans' pockets harder - People Daily |url=https://www.pd.co.ke/news/weak-shilling-to-hit-kenyans-pockets-harder-207667/ |access-date=2023-10-30 |website=www.pd.co.ke |language=en-GB}} According to Dr. Thugge, the attempt to artificially maintain a strong exchange rate has come at the cost of losing vital international reserves.{{Cite web |last=Tongola |first=Mate |title=More demand for the dollar to blame for a weakening shilling- Kamau Thugge |url=https://www.standardmedia.co.ke/business/business/article/2001484012/more-demand-for-the-dollar-to-blame-for-a-weakening-shilling-kamau-thugge |access-date=2023-10-30 |website=The Standard |language=en}}