Nairobi, April 3 -- The Central Bank of Kenya (CBK) faces another headache in complying with the law requiring staggered replacement of its directors as the terms of six of the seven board members come to an end.

Two of the seven board members, Governor Patrick Njoroge and Chairman Mohammed Nyaoga will exit on June 17, marking the first round of the directors' overhaul at the CBK.

The second round of the board shake-up will happen in December next year when the terms of four directors will end at once, highlighting the difficulty of complying with regulations requiring phased replacements.

Practised mainly in US corporate law, staggered boards are often used to prevent hostile takeovers and provide continuity through a smooth transitio...