Micah Cheserem served as Governor of the Central Bank of Kenya for eight years after being appointed by Kenya’s second President, the late Daniel Arap Moi, without applying for the position.
In January 1984, Cheserem joined the Central Bank of Kenya (CBK) as a director; however, on July 23, 1993, while in Malawi, he received news of his appointment as CBK’s Governor on the radio.
“23rd July 1993, as I was working in Malawi, I received a call from Kenya stating that the radio has said you have been appointed governor of the Central Bank of Kenya,” Micah Cheserem stated during an interview with CBK.
According to Micah Cheserem, the appointment was a mistake, as he had not made any application expressing his interest in becoming CBK Governor.
Following the radio news of his appointment, the former governor called the President.
Despite the former Governor explaining to the President that he was not in Kenya and had not made any application, Moi congratulated him and asked him to report to work on Tuesday.
Given the order to start working with immediate effect, Cheserem informed the Malawi company he was working with about his unexpected appointment and began serving as the CBK Governor on Tuesday, as ordered by Moi.
Micah Cheserem served for four years and was reappointed for another four-year term.
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CBK Leadership Changes During Micah Cheserem Tenure
Upon arrival for his duty at the CBK, Micah noted that Moi had just appointed Thomas Kibua as the deputy CBK Governor. In addition, the head of banking had been changed to Ruben Marabi.
As he started working, his friends warned him that the job was a setup; however, he continued as ordered by Moi.
Upon assuming office as CBK Governor, the Kenyan shilling had fallen in value, the country lacked foreign exchange, and the staff at CBK were demoralized.
Furthermore, the International Monetary Fund (IMF) withdrew its funding from the Bank, necessitating negotiations with Micah.
Maurice Kanga, who had been the head of research, had become the secretary at the National Bank on the directive of the Treasury PS.
Challenges in CBK
As Cheserem aimed to establish measures to restore the bank’s stability, 47 loads of exchange papers were burnt in the Karura forest during the bank’s operational restructuring.
Goldenberg International had been paid KSh 5.8 billion as export compensation, with records of the treasury bill in the bank’s drawer, which Micah personally canceled.
According to the former Governor, there was a further overnight KSh 1.2 billion loan by East Bank Exchange Bank to National Bank.
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Reforms under Micah Cheserem Tenure
The government and the treasury were not allowed to borrow more than 5% of the previous year’s revenue.
All directors in the bank were to be interviewed by the Central Bank of Kenya before assuming the office for accountability.
CCTV cameras were installed in CBK to allow monitoring of the bank’s workers to ease the demoralization.
Additionally, Micah introduced a law stating that when workers have 5 years until retirement, they would undergo retirement training each year to ease the transition.
Micah made a publication on how to establish a quality work environment and increase productivity in a book titled ‘The Will To Succeed’ and the documentation of the Central Bank.
About Micah Cheserem
Micah was born on December 5, 1948, and graduated with a degree in Accountancy from Nairobi in 1970.
His professional qualifications include the Associate of the Association of Certified Accountants (ACCA) from London, which he obtained in 1972.
Later, he became a Fellow of the Chartered Certified Accountants (FCCA), which enabled him to work at top multinational companies, including Unilever subsidiaries.
Career and Achievements
As an accountant, Cheserem worked in major companies including British American Tobacco in Kenya.
Further, he worked in Fluorspar Company and East African Industries, a Unilever subsidiary.
Later worked with Unilever subsidiaries in Malawi, rising to the role of Commercial Director and was a member of the Capital Markets Authority (CMA) from the early 1990s.
Between 1984 and 1991, he worked as the Director at the Central Bank of Kenya.
Cheserem served as CBK Governor from July 1993 to April 2001.
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