Gerald Arita, the nominee for Deputy Governor of the Central Bank of Kenya, has informed Parliament that his 36 years of experience in various roles within the institution have thoroughly equipped him to assume the position if his appointment is approved.
Appearing before the joint-led committee by Mandera Senator Ali Roba and Molo MP Kuria Kimani Senate and National Assembly Finance, he revealed that he played a pivotal role in establishing mobile money banking.
Arita told the MPs that then Safaricom CEO Michael Joseph approached him. At the same time, he served as the Director for Bank Supervision with the idea of the telecommunications company coming up with a system in which money could be sent using mobile phones. After that, he advised then Finance Minister John Michuki on the importance of the matter, which was adopted.
“I was the first person that Safaricom met when it wanted to share a money transfer proposal. Michael Jackson met me when they were introducing M-Pesa. I had a choice of chasing him away or listening to him. I took the initiative to listen to him and went through the product finally and gave them a pilot license; that was one of my biggest achievements.”
He added, “I then proceeded after that by advising then Finance Minister late John Michuki on the importance of the government allowing that, and it has now revolutionized how money transactions in the country are carried out,” emphasized Arita.
Kakamega Senator Boni Khalwale questioned Arita on how he plans to avoid potential conflicts with Central Bank Governor Kamau Thugge, raising concerns that he, having served at the Central Bank for his entire career since joining as a management trainee in 1988.
‘’ Listening to your long resume, you’ve been very senior in the bank, and I’m afraid because this many years in the bank you ran the risk of being a Mr. ‘‘know it all,’’ to the extent you might not accept to work under the governor of the central bank who has not grown in the central bank unless you convince us we might not recommend you.’’
“I’m a team player; there is no fear the Governor of the Central Bank has the duty of allocating responsibilities to the two Deputy Governors based on their experience and expertise. I do not see how there will be conflict among us since each one of us has got his clear roles to play spelled out; I have represented CBK to market the Eurobond in the US together before, and we’ve worked together when he was a PS,” said Arita.
Turkana South MP, John Ariko, inquired about the new measures the nominee intends to introduce to the institution, seeking clarification on the security of Kenya’s currency printing, which is currently being handled in Germany, raising concerns about the potential risk of unauthorized individuals replicating the currency abroad.
If approved, Arita stated that he is committed to ensuring better market coordination and increased liquidity, highlighting the ongoing efforts to provide cash transfers to vulnerable communities as a means of empowerment. He added that lowering inflation remains a key priority, assuring that money printing processes are secure and tamper-proof.
Baringo North MP Joseph Makilap questioned Arita, saying he was satisfied with his accomplishments so far and ready to retire, and why he chose to apply for the job instead of enjoying a peaceful retirement.
Arita said, “I retired last month having attained 60 years having served the country in the Central Bank in various capacities for the last 36 years but I still have energy and the necessary experience to serve the country, That is why I believe President William Ruto has nominated me to this position and if approved by this house, I will work.’’
Kenya has 40 commercial banks, while Nigeria has 20. It is not easy to regulate the number of commercial banks in the country, but the market will determine their viability.
Mombasa Senator, Mohammed Faki, asked Mr. Arita to comment on the incidents of clients being defrauded in their Bank accounts and what the possible solutions he will offer to end Arita clarified that it’s a serious issue with the Central Bank doing penetration vetting to seal off any loopholes that may lead to customers losing their money with cyber security centers being set up.
Arita’s net worth is KES 169 million, with his home contributing significantly to this figure. Although he built the house 20 years ago for KES 20 million and acquired the land for KES 5 million, he has valued the property at its current market rate, reflecting its appreciation over time.
