Top executives at KCB have taken an early retirement, paving the way for the new CEO Joshua Oigara to hire a young team to guide Kenya’s largest bank.
Company secretary Kiprop Malakwen and director of audit Fred Mutiso have opted for the bank’s earlier retirement plan, prompting the lender to start an executive job search that will also fill the vacant positions of chief finance officer and chief business officer (Kenya).
Mr Malakwen has served as company secretary since 1994 while Mr Mutiso has been in charge of the lender’s audit function since 2009 but joined KCB in 2001.
Mr Oigara, 38, is overseeing the second phase of restructuring at KCB that has led to the merger of a number of functions.
“The organisational structure changes that KCB is undertaking is necessary in order to place the bank in a more competitive position and enable it to focus on its core business,” he said in an earlier statement.
Mr Oigara replaced Martin Oduor-Otieno in January as CEO, making him on the youngest chief executives among the NSE-listed firms.
Mr Oduor-Otieno shepherded the first phase of the bank’s reorganisation that led to a leaner executive team, fewer reporting channels and the exit of a number of executives including Peter Munyiri and Sam Kimani who are now heads of Family Bank and Jamii Bora Bank respectively.
The bank’s C-suite now consists of the chief business officer-Kenya, chief financial officer and chief information technology officer who report to the chief executive officer.
Five directors in charge of credit, human resources, risk, corporate and regulatory affairs (a new position), and strategy will also report to the CEO.
“Those affected by the review have an option to be redeployed in other areas of the business or apply for the approved voluntary early retirement programme in the next one month,” Mr Oigara said in February.
The bank said it would cut its cost to income ratio — a measure of efficiency— from 57.4 per cent last year to lower than 50 per cent.
The bank’s net profit grew 11.9 per cent to Sh12.2 cementing its position as Kenya’s most profitable lender. Its share has outperformed the market to gain 85 per cent to Sh42.50 over the past year.