Previously long-serving founding chief executive John Kithaka has reoccupied the position. Mr Kithaka quit in October 2016 following Mr Korir’s promotion.
Mr Kithaka had been at the helm of the financially haemorrhaging investment group for more than a decade while Mr Korir was the chief operating officer.
Founded in 2002, it has a membership of 70,273 investors, with a significant stock held by Kenyans residing in the UK and US.
FEP’s multiple projects including a planned 146-bed hotel in Sagana, Kirinyaga County, have missed completion deadlines for lack of capital.
Diaspora-backed investment firm FEP Holdings has sent chief executive Maurice Korir packing nearly two years after tasking him with restructuring the chama.
Previously long-serving founding chief executive John Kithaka has reoccupied the position. Mr Kithaka quit in October 2016 following Mr Korir’s promotion.
Mr Kithaka had been at the helm of the financially haemorrhaging investment group for more than a decade while Mr Korir was the chief operating officer.
“FEP Holdings Ltd board of directors wishes to announce the resignation of the chief executive officer, Mr Maurice Kimutai Korir effective March 8, 2018,”read a statement.
“The board has appointed Dr John Muchira Kithaka to the position of the group executive director with immediate effect.”
The firm’s board linked the management shake up to need to conform to a changing investment landscape.
“The board wishes to assure shareholders and stakeholders, both local and in diaspora, that the corporate leadership changes are aimed at aligning and strengthening the group’s organisational structure to ensure we meet evolving investor expectations,” it said.
The Sh4.4 billion asset chama has faced a string of troubles in the last few years.
Founded in 2002, it has a membership of 70,273 investors, with a significant stock held by Kenyans residing in the UK and US.
FEP’s multiple projects including a planned 146-bed hotel in Sagana, Kirinyaga County, have missed completion deadlines for lack of capital.
Mr Kithaka will be charged with finishing stalled projects and revamping the chama. Its planned rights issue collapsed while plans to acquire a majority stake at Credit Bank, controlled by the Nyachae family, also failed.
The Central Bank of Kenya in 2016 declined FEP’s bid to take control of the bank after raising queries on the chama’s share register and ability of its financial muscle to adequately capitalise the small lender.
The banking sector regulator had raised similar ownership and capital concerns early the same year in denying the investment group a licence to operate a deposit taking microfinance bank, despite a temporary approval.
FEP was rocked by fraud in 2016 and hired an asset recovery agent to pursue six former senior managers and confiscate Sh67 million allegedly stolen from the organisation.
A forensic audit on the investment group’s operations by KPMG had revealed then that half a dozen top executives were discreetly siphoning cash meant for projects and investments. Prior to joining FEP in 2014, Mr Korir was chief operating officer at publicity firm Ogilvy.
