Segman replaced as KenolKobil Group CEO with Kenya head

Jacob Segman has been replaced as CEO of KenolKobil barely two months after he was stripped of chairmanship of the oil marketer.

The oil marketer Wednesday announced that Mr Segman’s 16-year reign as CEO has come to an end following his replacement with David Ohana, currently the general manager of KenolKobil Kenya unit.

“Although Mr Segman retires on July 3, 2013 as group chief executive officer, he will retain a role as special advisor to the board of directors,” said James Mathenge, the oil dealer’s chairman in a statement Wednesday.

“Mr Ohana will join the board of directors of KenolKobil Limited as well as the boards of the KenolKobil Group subsidiary companies,” added Mr Mathenge who was tapped as chairman last month.

Mr Segman, who joined KenolKobil in 1990, was in April 2010 appointed chairman, making him the only chief executive to double as board chair among the companies listed at the Nairobi Securities Exchange (NSE).

The firm in May separated the roles of chairman and CEO in the wake of arguments by the capital markets regulator that an independent chairman would be in a better position to oversee management and represent shareholders’ interests.

READ: KenolKobil picks oil veteran to chair board

Mr Segman is entitled to receive 20 million shares under an executive compensation plan currently worth Sh175 million, which made him one of Kenya’s best rewarded business managers.

READ: Kenol cuts executive pay, holds CEOs share deal

The change in the oil marketer’s corner office comes at a moment when the company has reported a loss of Sh6.2 billion. This is the second highest ever among firms listed at the Nairobi bourse after the Kenya Airways loss of Sh7.9 billion.

The shares of KenolKobil— which is associated with former powerful Cabinet minister Nicholas Biwott— has shed 34 per cent in the past six months to the current price of Sh8.75, making it worst performing stock on the bourse over the period.

The company’s losses reversed a net profit of Sh3.2 billion it posted in 2011.

“In 2009, Mr Ohana was promoted to the position of general manager for the Kenya operations and he has been instrumental in growing the company’s market share and dominance in the various sectors of the downstream business,” said Mr Mathenge.