Equity Group’s #ticker:EQTY chief commercial officer Polycarp Igathe has been promoted to become the managing director of the lender’s Kenyan operation as part of the company’s management and operations restructuring.
Mr James Mwangi, who has been the managing director of both Equity Bank Kenya and Equity Group Holdings, will now only head the parent company which is listed on the Nairobi Securities Exchange #ticker:NSE.
The changes effected by Equity are part of reforms being undertaken by Kenyan multinational banks to boost management focus of the subsidiaries and their supervision by their parent companies.
“This marks the completion of the group’s strategy of separating the management of its subsidiaries from that of the holding company,” Equity said in a statement.
“Mr James Mwangi will now serve as the group chief executive and managing director providing overall strategic direction and oversight to the group.”
Other banks that have started or completed similar operational and management changes include KCB Group #ticker:KCB , I&M Holdings #ticker:EQTY and NIC Group #ticker:NIC.
The changes have featured creation of new non-operating holding companies which own the operating subsidiaries, freeing the parent firms to branch out into non-banking businesses including stock brokerage and property investments.
The restructuring moves allow the banks to overcome the restrictions placed on them under the Banking Act.