Kenya’s President William Ruto nominated Kamau Thugge as the nation’s central bank governor, as he looks to boost an economy reeling from sticky inflation and a weakening currency.

Ruto sent his decision to parliament, according to a statement from his office. If approved by lawmakers, Thugge will replace Patrick Njoroge, whose second and final four-year term as head of the Central Bank of Kenya expires on June 17.

Thugge, 57, is a member of Ruto’s council of economic advisers. He served as the Treasury’s principal secretary from 2013 until 2019, when he was arrested following a probe into alleged irregular payments for a dam construction project. Thugge denied wrongdoing and the public prosecutor withdrew charges against him.

Thugge previously worked as a senior economist and deputy division chief at the International Monetary Fund. He obtained a masters degree and a PhD in economics from Johns Hopkins University.

With the new governor’s appointment, the top leadership of the central bank will be overhauled. In March, the lawmakers approved Ruto’s pick of Susan Jemtai Koech as deputy governor. Another deputy and a new chairman of the board of directors are set to be named to replace those whose terms are expiring too.

Currency, Inflation Pressure

The new governor will need to stabilize a currency that’s weakened about 10% this year, as part of measures to slow inflation that has been fueled by drought-fanned food prices and the cost of energy. The depreciating shilling has contributed to keeping inflation above the central bank’s target-range of 2.5% to 7.5% since June last year.

“From a market perspective, Thugge’s nomination sends all the right signals,” said Connor Vasey, Africa analyst at Eurasia Group. “A conservative economist who did his time at the IMF and who, while in treasury, pushed back against some unorthodox policies such as the now defunct interest rate cap.”