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Muriuki named Africa’s banking CEO of the year

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Gideon Muriuki has turned around the Co-operative Bank from a loss-making lender to Kenya’s fourth most profitable bank last year. Photo/FILE

Co-operative Bank chief executive Gideon Muriuki has been named Africa’s banking CEO of the year by the London-based International Banker magazine.

The NSE-listed lender was also named Africa’s most innovative retail banker for developing financial products for savings and credit co-operative societies (Saccos) as well as small and mid-sized enterprises.

The International Banker honoured Mr Muriuki for turning around Co-op Bank from a loss-making lender, propelling it to Kenya’s fourth most profitable bank last year, while keeping its ownership in the hands of the co-operative movement.

“Mr Muriuki was appointed CEO in 2001 and has since turned around the bank from loss-making to one of East Africa’s fastest-growing and most profitable banks,” reads the citation by Simon Brown, editor-in-chief of International Banker.

“Mr Gideon Muriuki has demonstrated remarkable foresight in insisting that the Co-operative Bank of Kenya will retain its identity as a co-operative bank even when it expands into other parts of Africa outside Kenya, even though it would have been much easier to go as a successful Kenyan commercial bank.”

Dyer & Blair Investment Bank was named Kenya’s investment bank of the year.

The magazine said Co-op Bank’s expansion model by way of joint ventures with co-operative societies like it did in Sudan is an innovative business model for growth.

READ: Co-operative Bank commences operations in South Sudan

Mr Muriuki’s tenure has seen Co-op turn around from a loss of Sh286 million in 2001 to a net profit of Sh9.1 billion last year.

The performance saw the bank outpace Barclays in the race for profit to deepen the dominance of indigenous lenders over multinationals in Kenya.

READ: Co-op Bank pulls ahead of Barclays in profit rankings

Mr Muriuki guided the bank to listing on the Nairobi bourse in 2008 through an initial public offering and has grown earnings nearly fourfold from the Sh2.3 billion it made that year.

The magazine highlighted Co-op Bank’s innovations in retail banking such as the Sacco Link platform which allows members to access ATM services and pay for goods and services using debit cards.

“The bank has successfully pioneered a retail banking model that goes beyond investment in conventional bank-owned channels such as branches, ATMs, agencies and electronic banking,” the magazine said.