Companies

Access Bank starts replacing Moi allies at Transnational

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Access Bank Kenya’s country managing director David Aluko with staff during its official launch into the Kenyan market on November 9, 2020. PHOTO | POOL

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Summary

  • The changes come after Access Bank Group completed the purchase of 99.98 percent stake of Transnational Bank on July 20 from companies owned by close associates of the late president Moi.
  • Top owners of the 36-year-old Kenyan bank were companies owned by close associates of the late Moi, including Joshua Kulei, Simeon Nyachae and the former Vice President George Saitoti.

Nigerian lender Access Bank has replaced key figures allied to associates of former President Daniel arap Moi from Transnational Bank after completing the purchase of a majority stake for Sh1.58 billion.

The firm’s regulatory filings show that Access Bank Group executive director for information technology and operations Ade Bajomo is now the new chairman of the Kenyan outfit, replacing Henry Kiplangat.

Prof Kiplangat is currently the vice-chancellor of Kabarak University and a director at Siginon Freight Ltd. Both institutions are associated with the Moi family.

The changes come after Access Bank Group completed the purchase of 99.98 percent stake of Transnational Bank on July 20 from companies owned by close associates of the late president Moi.

Access Bank Kenya has also named former country managing director at Access Bank Gambia Limited, David Aluko, as the boss.

Mr Aluko is replacing Sammy Lang’at who has been the CEO at Transnational since November 2010.

The fate of other board members— John Kenduiwo, Prof Daniel Rotich, Jacqueline Onsando and Emmy Kiptugen— is uncertain since Access Bank is yet to make public the new look board.

Top owners of the 36-year-old Kenyan bank were companies owned by close associates of the late Moi, including Joshua Kulei, Simeon Nyachae and the former Vice President George Saitoti.

The lender made a loss of Sh40.2 million in nine months ended last September, worse from a loss of Sh23.3 million in the preceding similar period.

Access Bank plans to launch into nine new counties next year as it sets eyes on areas such as trade financing following the buyout of Transnational Bank.

Five counties — Kiambu, Meru, Machakos, Kisumu and Nyeri — will be given priority, followed by Nyandarua, Kakamega, Bungoma and Kisii.

The expansion will see the bank extend its reach to 21 counties from the current 12 that are served by 24 branches.

Nairobi has the most branches with five, followed by Nakuru (four) and Uasin Gishu (three). Mombasa and Nandi have two branches each while the remaining seven counties have one each.

Transnational was strong on agribusiness financing prior to the acquisition by Access Bank Group.

The Nigerian lender says it wants to grow into new areas such as trade financing, SME lending and corporate banking.