KCB appoints former Equity bosses in executive shake-up
Mr Oigara said the appointments are part of the KCB transformation journey. Photo/FILE
KCB has tapped former Equity Bank executives in a management shake-up that has seen the bank fill six positions under its new organisation structure.
Samuel Makome and Collins Otiwu who until last month were Equity Bank’s managing director of Tanzania and finance director respectively have been appointed KCB’s head of Kenya business and chief financial officer (CFO) respectively.
The bank also appointed John Kania as company secretary from Housing Finance and Charles Langat to head its audit functions from Sovereign Group, an investment fund associated with the family and allies of former president Daniel arap Moi.
These are the first major changes in KCB’s executive suite since Joshua Oigara replaced Martin Oduor-Otieno in January as CEO, making him one of the youngest chief executives among the NSE-listed firms.
Two of the six positions including directors in charge of credit and corporate banking have been filled by insiders and the posts have been vacant following the retirement and exit of former holders this year.
The bank reviewed its operation in changes that saw the introduction of the managing director (Kenya) and heads of its subsidiaries, including Uganda, Tanzania, South Sudan, Burundi and Rwanda, reporting to Mr Oigara. Previously, the heads of the subsidiaries reported to chief business officer (international), which was below the CEO’s position.
“These appointments are part of the KCB transformation journey that started in 2011 to review the bank’s corporate and governance structures, business model as well as review job roles and people placement with the roles across the business,” said Mr Oigara Monday in a statement.
Mr Oduor-Otieno shepherded the first phase of the reorganisation that led to a leaner executive team, fewer reporting channels and the exit of a number of executives including Peter Munyiri and Sam Kimani who are now heads of Family Bank and Jamii Bora Bank respectively. The current phase was prompted by last month’s retirement of Kiprop Malakwen (company secretary) and Fred Mutiso (director of audit).
New executive suite
Mr Malakwen had served as company secretary since 1994 while Mr Mutiso had been in charge of audit function since 2009, but joined KCB in 2001.
Other divisional directors including Peter Kimondo (chief business officer), Wilfred Sang (credit) and John Wandolo (corporate banking) left the bank early in the year.
The shifts have changed the face of KCB’s executive suite with James Agin, who was yesterday unveiled as head of corporate banking, being the oldest member. Mr Agin has been acting as head of the KCB’s Kenya business and joined the bank in 2008 as Uganda managing director. Human capital has become the most sought-after resource for market share growth in the local banking industry where business ideas are being copied with speed.
This has promoted changes in the executive team of most banks including Equity , National Bank and Barclays with many lenders opting for Kenyans in the diaspora, a path that KCB has avoided.
Local banks have been hiring executives from international banks in a bid to replicate the business model, especially in the corporate debt market.
But KCB is keen on a larger share of high-margin business lines, such as those targeting small and medium-sized firms. “These changes are driven strictly by the business needs…growing market share particularly in small and medium enterprises and further reducing our costs,” said Mr Oigara.
KCB lost the position of Kenya’s most profitable lender to Equity Bank in the three months to March on reduced lending income.
The bank’s net profit grew by a quarter to Sh3 billion in the period to March while that of Equity stood at Sh3.21 billion in the same quarter. Its share at the Nairobi bourse has gained 26.6 per cent over the past six months to Sh39.25.
