Equity hunts for top executives for holding company

Equity Bank plans to hire at least three top executives as part of an ongoing corporate restructuring that will see the lender form a holding company to oversee operations in all its subsidiaries.

The bank, which posted a net profit of Sh13.2 billion last year, said it was shopping for chief officers for marketing, communications and credit to who all its units, including Kenya, will answer.

James Mwangi, the chief executive officer, said the holding company’s executive team will have about 20 members, eight of whom are already in place.

The formation of a holding company to oversee the bank’s operations in Rwanda, Kenya, Uganda, South Sudan and Tanzania will see it assume a structure similar to I&M Bank Group.

The group — which has subsidiaries in Mauritius, Kenya Tanzania and Rwanda—operates under I&M Holdings Ltd which last year listed at the Nairobi Securities Exchange (NSE).

“We are slowly separating Kenya and the group by creating a holding company that will own and provide oversight to all our units in the region,” said Mr Mwangi in an interview with the Business Daily.

“What we have now is the leadership of Equity Bank Kenya who our subsidiaries have been erroneously reporting to. This has made the leadership of the Kenya unit to have too much on their hands; we want to free them.”

Current executives who will form part of the holding company executive team include Mr Mwangi, Julius Kipngetich (chief operating officer) and Mary Wamae (company secretary).

Others are John Stanley (chief finance officer), Reuben Mbindu (director of human resources), Raphael Hukai (chief information officer) and Jumaane Tafawa (director investments and strategic initiatives).

“The leadership team is highly skilled because all our subsidiaries depend on these people and this requires the bank to hire the best from around the globe,” said Mr Mwangi.

A new law allows non-operating holding firms to provide oversight and leadership to subsidiaries, under the supervision of the Central Bank of Kenya.

Before the Finance Act 2012, ownership of above 25 per cent of a bank share capital had to be by a banking firm, state corporation a government or its parastatal.

A holding company is tasked with offering financial, advisory, accounting, management and information processing services.

Firms pay CBK Sh1 million for approval and Sh500,000 annual fee. Separating a holding company from a parent company is said to be advantageous when it comes to raising funds for investment or acquisitions.