Kenyan financial sector jittery after indictment of top treasury officials - KBC

The arrest and prosecution of top treasury mandarins continues to cause ripples in the Kenyan fiscal and monetary space.

The Kenya shilling continues to dip against the dollar and policy analysts are warning of further weakening if certainty at the national treasury is not restored.

The arrest and prosecution of secretary Henry Rotich and principal secretary Kamau Thuge has left Treasury in a management limbo.

The two who are the top most officials in the ministry are in charge of the day to day running of the docket that manages the country’s fiscal space.

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Rotich was named the Treasury CS in 2013, placing him in charge of government’s finances, as well spearheading an efficient and sustainable public financial management.

Phillip Chebunet a policy analyst says, the appointing authority should cool the situation by giving a direction as who should take charge of the national treasury as the two fight to clear their names in court.

Chebunet says failure by the executive will continue to hurt critical sectors of the economy especially the Kenya shilling, which has so far lost almost 6 percent to the dollars.

The shilling weakened further Tuesday closing the trading day today at 103.66 to the American dollar after opening the day at 103.51 to the greenback.

Also likely to be thrown into jeopardy are financial agreements and funding of projects by development partners since CS Rotich or PS Thuge are the only two authorized signing authorities.

All eyes will be on president Uhuru Kenyatta to see which steps he will take to normalize situation along Harambee avenue.

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