NIC starts executive search after naming acting chief

NIC Bank has named the executive director in charge of corporate banking as acting CEO as the lender seeks a permanent successor to James Macharia, who was appointed to the Cabinet.

The bank on Thursday picked Allan Dodd, who has served as executive director for corporate banking since 2006. Mr Macharia, who was sworn in as Health secretary on Wednesday, has led NIC Bank since 2005.

Mr Dodd holds a degree in Economics, and analysts reckon that the lender could be keen to widen its choice of CEO to include outsiders.

“NIC could confirm Mr Dodd as its CEO’s but it appears they are keen to offer some outside the bank the opportunity to lead it,” said an executive at PricewaterhouseCoopers (PwC). 

NIC Bank becomes the latest lender to have a new occupant in the top office following the exit of a number of CEOs over the past year.

Those who have exited include Adan Mohamed (Barclays Bank), Martin Oduor-Otieno (KCB) and Reuben Marambi who left the National Bank of Kenya.

These banks, save for KCB, hired outsiders for CEOs. Mr Mohamed was promoted to Barclays Africa division after serving as head of the Kenyan unit for 10 years, before being tapped as Cabinet secretary in charge of Industrialisation.

Consolidated Bank is also seeking a new leader after its CEO Ndegwa Wachira attained retirement age.

The new chief executive of NIC Bank will be expected to step up expansion into foreign markets, especially within the east African region.

The leader will also be expected to reverse the slowdown in profits the mid-tier lender faced in the first quarter running through March.

NIC’s profits rose 20 per cent to Sh1.2 billion in the period to March, compared with 29 per cent growth in the same period a year earlier. This was linked to uncertainty associated with the March general election that squeezed the industry’s lending by Sh10 billion.

Under Mr Macharia, the bank opened foreign subsidiaries in Tanzania and Uganda and its profits have increased from Sh275.6 million in 2005 to Sh3 billion last year.