Former CBK governor says keeping the financial system running was his biggest worry after taking over the bank in 2015
Patrick Njoroge has revealed that the pressure of taking over the Central Bank of Kenya was so intense that he lost five kilos within his first two months, with the reliability of the bank’s systems becoming his biggest source of worry.
Rather than being consumed by the economic problems dominating the country at the time, Njoroge in a reent interview said he was more concerned about what would happen if critical systems failed and the bank could not operate normally the following day.
“In the first two months, I lost five kilos. What would keep me awake at night? There wasn’t so much inflation and things like that. It was, will the systems turn on the next morning? Some of these things, if they broke and the thing didn’t work in the morning, the entire country would go down.”
Njoroge, who served as the ninth governor of CBK, was speaking in an interview on Monday, August 10, 2026, as he reflected on the challenges he faced during his tenure.
He returned to Kenya after spending about 20 years at the International Monetary Fund (IMF), having previously worked at the Ministry of Finance. His appointment brought him back to a country he said had changed considerably during his long absence.
“The president chose my name. That’s when everybody sort of got excited. Who is this person? Does he know anything?” Njoroge recalled.
The transition was not straightforward.
“It was a new country that I had not been fully engaged in for 20 years,” Njoroge said.
CBK under pressure
Njoroge took over at a time when Kenya was grappling with high inflation and growing problems in parts of the banking sector.
“Inflation was very high. There was never a moment that you could sit back and sort of think calmly through things. There was no time for calm,” he said.
CBK subsequently took action against three banks in quick succession. A smaller bank was shut down in August 2015, followed by Imperial Bank in October and Chase Bank in April 2016.
Njoroge said the closures were necessary to enforce banking rules and change a culture of regulatory forbearance.
Speaking about Chase Bank, he said, “Chase had, you know, in my language, had the face of Kenya,” referring to the bank’s diverse depositor base.
He said the action taken during the period eventually contributed to changes in the banking sector, with banks becoming more focused on meeting regulatory requirements.
Another major test came in 2016 when Parliament introduced interest-rate caps. Njoroge said CBK had warned that the policy would lead to credit rationing. The caps were eventually removed.
Covid-19 presented bigger challenge
Njoroge’s tenure was also marked by major external shocks, including Brexit and the Covid-19 pandemic.
He said CBK had prepared for the possible effects of Brexit and managed the initial market shock. Covid-19, however, presented a much tougher challenge.
CBK responded by supporting the economy and promoting digital payments, including measures to reduce transaction costs. Njoroge said the increased use of digital transactions continued even after the pandemic.
The bank also upgraded its systems during his tenure and strengthened its workforce by recruiting data analysts and other specialists.
In 2019, CBK introduced a new generation of banknotes and oversaw the demonetisation of the Sh1,000 note.
The institution also worked on a project to enable Kenyans to invest in Treasury bills and bonds through digital devices. The project took five years and was launched shortly after Njoroge left office.
Looking back, Njoroge said uncertainty would remain a reality for the Central Bank as it responds to domestic and external shocks.
He urged Kenyans to support the institution, saying its success was ultimately a success for the country.