In 1999 President Daniel Moi differed with the then Minister of Finance Simeon Nyachae.
President Moi then relegated Mr Nyachae to the Industry portfolio and replaced him with Dr Masakhalia.
Mr Nyachae then opted to resign from Government.
The move was foreseen by the then official opposition chief Mwai Kibaki who openly opposed it.
This prompted Mr Kibaki to reveal that Mr Nyachae's demotion was purely political.
"The reshuffle was aimed at removing just one man (Nyachae)," said Mr Kibaki.
He further claimed that Mr Nyachae suffered blow because he did not condon corruption.
This was backed by Mr John Michuki a former Finance Minister.
"There will be no more control of the economy...which had been effected at the Treasury.If the Treasury does not perform, no other other Ministry will," Michuki said.
The then Anglican Archbishop David Gitari had congratulated Mr Nyachae for his quitting.
The public had hailed Mr Nyachae's performance at the Treasury and warned that his resignation could spell difficult times for the Kenya economy.
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