GBR Team 02/04/2020
Central Bank of Kenya has today announced the appointment of David Luusa as the new Director of Financial Markets, replacing William Nyagaka, who has been redeployed within CBK.
Luusa has been picked from Standard Chartered Bank Kenya where he has been serving as the Managing Principal and Head of Financial Markets for East Africa.
“I am delighted to announce the appointment of David Luusa effective April 1, 2020,” Governor Njoroge said in a circular to CEOs of Commercial Banks and Micro-Finance Insitututions.
“David is well known in the local financial industry having worked across different markets in Africa and Europe for over 16 years.”
The appointment comes at a time when the government is facing a budgetary squeeze as revenues decline against mounting public debt.
Recent, government paper auctions have been undersubscribed by investors especially at the short end of the 91-day and 182-day Treasury bills.
The government is also facing foreign debt management pressure as the
Shilling comes under pressure from global currencies especially the US dollar. This, as capital flight from the markets by foreign investors continues unabated.
The Nairobi Securities Exchange has seen performance plunge to a 17-year low in March with investors losing more than US$50bn in wealth.
The NSE 20-share index fell below 2000 to touch levels not seen since July 2003.
Bank wealth managers have also noticed the transfer of funds abroad by both local and foreign investors, further squeezing the shilling.
Watchers however expect reprieve from lowered fuel prices as global crude prices crater amidst collapsing demand.
“He is very highly thought of,” the Head of Treasury at a local Commercial Bank said of Luusa.
According to the Banker who did not want to be quoted on record, Luusa’s appointment represents a deliberate generational transition at CBK.
“I think they are injecting younger guys into CBK. The governor has been very deliberate about it. The older generation at CBK find it hard to change some decision making and to adopt the new way of doing things.”