- The KCB Group is restructuring its management team, marking the second major reorganization of its management since 2011.
- The lender has dropped three executives, changed the responsibilities of others and created new roles in a move he says will lead to better management.
KCB Group #ticker: KCB is restructuring its management team, marking the second major reorganization of its management since 2011.
The lender has dropped three executives, changed the responsibilities of others and created new roles in a move he says will lead to better management.
Those who recently left the Lender’s C-suite are Apollo Ongara who was Director of Credit, Judith Sidi Odhiambo (Head of Corporate and Regulatory Affairs), Joseph Kania (Company Secretary) and Jane Mwangi (Managing Director of the Foundation KCB).
KCB said Mr. Ongara, Ms. Mwangi and Mr. Kania left the company between last year and early 2021 to “pursue other interests.”
The lender added that Ms Odhiambo has stepped down from the executive committee but still retains her role as chief business officer of the company. She will work under the direction of a new appointee who will join the executive committee.
“Judith, however, continues to hold the position of Group Head of Corporate Affairs, with the changes expected to see a new function merged under the leadership of Group Marketing, Corporate Affairs and Citizenship, a C-suite role,” KCB said in a statement.
Benard Okello has been appointed acting director of credit while Wanyi Mwaura also temporarily holds the role of director of marketing, corporate affairs and citizenship.
Bonnie Okumu has been appointed Group General Counsel, also assuming the role of Corporate Secretary. Leonard Mwithiga has been appointed to the newly created position of Group Director of Shared Services.
Samuel Makome’s title has been changed from Director of Operations to Director of Sales.
“We intend to substantially staff the Group Credit Manager and Group Marketing, Corporate Affairs and Citizenship Director in the first half of this year,” says KCB CEO , Joshua Oigara, in the report.
“With the group’s financial director, the group’s human resources director, the group’s technical director and the group’s risk director, the management committee is complete.”
He added that the changes should consolidate and develop the bank’s business, align brand communication, leverage social impact synergies, improve credit management, improve service experience and subsidiaries to support and strengthen customer value propositions.
KCB Group net profit fell 22 percent to 19.6 billion shillings in the year ended December due to increased provisions for coronavirus defaults.
The Nairobi Stock Exchange-listed company, which also operates in Rwanda, Burundi, Tanzania, Uganda and South Sudan, reported a net profit of 25.1 billion shillings the previous year.
He said his non-performing loans in 2020 rose to 96.6 billion shillings from 63.4 billion shillings a year earlier,
KCB Chairman Andrew Kairu said the reshuffle would give the CEO better oversight to create “a company that is truly fit for purpose.”
During the management change in 2011, KCB cut around 15 executive director positions in a reorganization that cost 1.6 billion shillings.
It was the first such program since the bank’s inception in 1896 and was aimed at boosting productivity, innovation and increasing the lender’s market share.
KCB is among companies reviewing their operations in the wake of the Covid-19 pandemic which has focused on cost reduction and innovation.
Britam Holdings #ticker: BRIT recently restructured its management team as part of a plan to lay off about 138 employees at a cost of 700 million shillings, the insurer saying its margins had been affected by a base of higher costs compared to its peers.
Standard Chartered Bank Kenya #ticker: SCBK laid off 200 employees late last year at a cost of 1.3 billion shillings, continuing its strategy of massive investments in technology to reduce reliance on physical branches.
NCBA Group #ticker: NCBA laid off a significant portion of its workforce, including executives, last year, but the extent of the downsizing has yet to be disclosed.
Co-operative Bank #ticker: COOP hired management consulting firm McKinsey last year to review its group structure in addition to lending processes with the aim of reducing default risk.
This is McKinsey’s second assignment to the lender that first hired her in 2014 to cut costs and transform the Nairobi Securities Exchange-listed company into a digital bank.
Editor’s Note: The article has been updated to clarify that Judith Odhiambo has left the C suite but will retain her role as the chief operating officer of the company.