The Kenya Post Office Savings Bank (Postbank) has appointed Sarah Serem as the new board chairperson effective January 13.
She replaces Ntoros Baari Ole Sentu whose term has since lapsed after serving at the helm of the bank for three years in a financially troubled situation.
Ms Serem brings to the savings bank a wealth of experience and expertise in government administration, having served in different capacities in the public sector, which would be valuable in resolving the financial crisis the bank currently faces.
Before her appointment, Ms Serem had served as the Kenyan ambassador to China and the chairperson of the Salaries and Remuneration Commission (SRC).
“The board and management of Postbank are confident in the appointment of Sarah Serem and we assure her of our full support. We are cognizant of the wealth of expertise that she brings on board and we are optimistic that under her leadership, we will advance our role of offering financial services to the people of Kenya” said Raphael Lekolool, Postbank managing director.
Ms Serem has expressed her delight to return to Postbank and is looking forward to a rigorous three-year term that will see the bank bring back its financial glory as well as restore its customers’ trust.
“I look forward to working with the bank’s leadership to meet our customers’ and stakeholders’ needs as well as advance the savings agenda of the country seeing as we are the institution mandated by the government to mobilise national savings,” she said.
Ms Serem takes over at a time the bank faces financial distress, with its cumulative losses wiping out shareholder funds.
An audit of the State-owned firm shows that it made a loss of Sh1.4 billion in the year ended December 2019 compared to a loss of Sh1.5 billion a year earlier.
Postbank’s customer deposits of Sh21.7 billion in the review period were higher than the negative capital of Sh10.6 billion.