Ex-CBK Governor explains how officials act out of fear under Ruto's leadership

Former Treasury Cabinet Secretary Professor Njuguna Ndung'u has accused President William Ruto of overrunning state institutions.

Ndung’u made the remarks while arguing that public officials are increasingly compelled to conform out of fear rather than independently execute their constitutional mandates.

Speaking during a development cooperation conference in Sweden, the former Central Bank of Kenya (CBK) Governor and said Kenya possesses the institutional and human capacity to make sound public policy decisions, but argued that those institutions have been weakened by leadership interference.

"Right now, I don't mind even if I'm quoted, right now the current president overruns all the institutions and that is why everybody in those institutions will have to conform for fear," Ndung'u said.

The former Treasury CS made the remarks while discussing the importance of institutional independence and integrity in public service, saying effective governance depends not only on capable individuals but also on institutions that are allowed to function without political interference.

According to Ndung'u, public officers should resist participating in questionable transactions because such decisions can have long-lasting legal and personal consequences.

"I refuse to do deals in the Ministry of Finance. I can't do deals. I know, it follows you to your grave. It doesn't go away with the regime," he said.

The Associate Professor of Economics added that he had witnessed colleagues become entangled in investigations that persisted for years, even after they had left office, arguing that institutional courage is necessary for public servants to withstand political pressure.

"It's only capacity at the individual level and institutional level that can give you that courage to say no because you know it will follow you. Regimes change and rules of the game change and that is one of the biggest lessons," he stated.

Ndung'u also reflected on his tenure as Central Bank Governor, using the development of M-Pesa to illustrate the significance of institutional independence.

He recalled facing pressure from political leaders during the early stages of the mobile money platform, when sections of the banking industry opposed its rollout.

"There is a Minister of Finance who even almost stopped M-Pesa. It's only that I reminded him that the Central Bank is independent and you cannot direct the Governor of the Central Bank," he said.

Despite asserting the Central Bank's autonomy, Ndung'u said he still had to navigate political realities surrounding the issue because of resistance from established financial institutions.

His remarks come as debate continues over the relationship between the Executive and independent institutions in Kenya, particularly governance, accountability and the autonomy of constitutional offices.

Professor Ndung'u is one of Kenya's most prominent economists, having served as Governor of the Central Bank of Kenya from 2007 to 2015 before later joining President William Ruto's administration as Cabinet Secretary for the National Treasury and Economic Planning from October 2022.

During his tenure at the Central Bank, Kenya experienced rapid growth in financial inclusion, with M-Pesa emerging as one of the country's most transformative financial innovations.

He has previously been credited with supporting the regulatory environment that enabled mobile money services to expand despite initial resistance from parts of the banking sector.

His service in government came to an end in July 2024 when President Ruto dismissed the entire Cabinet following nationwide youth-led protests. He was replaced by current Treasury CS John Mbadi.

Academically, Ndung'u holds a PhD in Economics from the University of Gothenburg in Sweden, as well as a Master's and Bachelor's degree in Economics from the University of Nairobi.

He began his career as a lecturer in advanced economic theory and econometrics at the University of Nairobi before serving as a principal economist at the Kenya Institute for Public Policy Research and Analysis (KIPPRA), a regional programme specialist at Canada's International Development Research Centre (IDRC), and later Director of Training and Executive Director of the African Economic Research Consortium (AERC).

Beyond public office, the former CBK Governor has served on several international advisory bodies, including the World Economic Forum's Global Advisory Council, the Brookings Africa Growth Initiative Distinguished Advisory Group, the Alliance for Financial Inclusion and the Better Than Cash Alliance.