Companies

Wave of recruitment as top bosses exit regional corporates

Boardroom wrangles, company reorganisation, poor financial performance have seen several management executives exit regional firms, sparking a wave of recruitment.

Mid-week, Rwanda’s largest bank by assets, Bank of Kigali, picked Diane Karusisi as its new managing director following the resignation of James Gatera.

The former managing director’s exit, after close to nine years at the helm, was announced early in the week by the bank’s board. Mr Gatera is tipped to replace Jack Kayonga, the CEO and chairman of Crystal Ventures — the Rwandan ruling party’s investment arm.

READ: Bank of Kigali picks new CEO as Gatera resigns

Under Mr Gatera’s stewardship, the Bank of Kigali grew to become the largest commercial bank in Rwanda by assets. As of September 2015, the bank held 31.8 per cent of the market share, while its total assets stood at $735.9 million, with its shareholders’ equity capping at $132.8 million.

The bank’s loan book also recorded a 32 per cent year-on-year growth to $413.4 million. In 2011, the bank became the second domestic company to be listed on the Rwandan Stock Exchange.

In Nairobi, three chief executives of Nairobi Securities Exchange-listed firms have quit in the past two months, with boardroom wrangles claiming an executive of a non-listed firm in the energy sector.

Falling profits

CfC’s ex-chief executive Kitili Mbathi, who had held the position for eight years, resigned, only to be appointed the director-general of Kenya Wildlife Service (KWS) for a three-year term. Greg Brackenridge, the regional chief executive of CfC Stanbic Bank, replaced him.

Mr Mbathi’s exit came at a time the firm saw its profits fall by 41.6 per cent to $19 million in the year ended June 2015. The poor performance, the firm said, was due to a flat interest income at $43 million, while its non-interest income dropped by 32.8 per cent to $33 million.

In its full year results, the firm is facing at possible losses in its South Sudan subsidiary due to the expected translation losses, after the country’s central bank devalued its currency by 84 per cent.

Barely a month after announcing a profit warning, gas producer BOC Kenya Ltd chief executive Maria Msiska resigned, and the firm immediately advertising her position. It was not clear what led to her resignation.

“Ms Msiska’s replacement will be announced upon appointment by the board. In the meantime, the finance director Arthur Kamau will assume the position of acting managing director of the company,” BOC said.

In December, the industrial gas maker issued a profit warning, projecting that its net earnings for the year ending December 31, 2015 would decrease because of low sales due to high competition, foreign exchange losses and a large deferred tax credit.

In 2014, the firm made a net profit of $2.29 million. The firm also said that a large deferred tax credit, which was cash flow neutral, was made in the income statement in 2014 and which will not recur in 2015.

Prior to her appointment as the managing director, Ms Msiska was the head of finance for the Africa office of BOC’s parent firm Linde Group. She also served as a non-executive director on the board of InfraCo, an infrastructure development firm that is currently working jointly with Rift Valley Railways on the Nairobi Commuter Service project.

Troubled TransCentury Ltd saw its chief executive Dr Gachao Kiuna exit last month, even as the firm remains in the red, with an expected debt repayment on its $80 million denominated convertible bond that is due for payment on March 25. In the half-year ended June last year, the firm reported a loss of $6.75 million, from a $16 million profit the year before.

Last week, Kenya’s Capital Markets Authority asked TransCentury to give a plan on how it intends to settle the debt. In October last year, the company announced it would fundraise to refinance the loan or restructure the debt before it became payable.

“TransCentury has committed to communicate what they intend to do with regards to the treatment of the bond, as well as give a long-term strategy of the company, in order to allow investors to make an informed decision,” CMA acting chief executive Paul Muthaura said.

Board room wrangles and corruption allegations saw Kenya’s state oil firm National Oil Corporation send its chief executive Sumayya Athmani on compulsory leave.

Earlier in June 2014, the Ethics and Anti-Corruption Commission recommended that she be charged with abuse of office, making fraudulent payments and failure to follow the procurement law when importing a diesel cargo back in February 2011.