KCB has appointed its HR Director Paul Russo as the new boss of Chase Bank. The nation's largest bank was picked by Central Bank Of Kenya to take over the distressed SME lender raising eyebrows.
This is because Kenya Deposit Insurance Corporation, the appointed receiver of Chase, is chaired by KCB chief executive Joshua Oigara.
Russo was recruited from South African lender Absa about two years ago.
The Strathmore MBA holder has also worked with PWC, an auditing firm.
The deployment of Russo comes ahead of Chase reopening its doors to the public next week.
Thursday, April 21, 2016
Tuesday, April 19, 2016
KCB is said to have come in third from four bids the Central Bank of Kenya received for purchase of the SME lender.
Chase Bank went down after misreported insider loans caused depositors to make a run on it.
Qatari lender, QNB, the second largest bank in Africa and the Middle East, is said to be the front runner to take over Chase Bank
If it is successful, it will take over an entity with an enviable portfolio of small businesses that other banks have been angling for to drive their growth.
Rand Merchant Bank of South Africa was reportedly second in the bid with KCB coming in third.
CBK has yet to formally make any official announcement regarding the matter but insiders indicate QNB may get the nod.
Chase shareholders have been pushing for CBK to bring in someone to run the bank rather than go the Good Bank - Bad Bank way which they feel would destroy the lender.
Also being mentioned is French lender BNP Paribas but this is seen as a long shot with few European lenders seeking to expand on the continent.
Nedbank SA has equally been mentioned as a possible candidate.
Wednesday, April 6, 2016
Paul Njaga takes over as Group MD and Chief Executive Officer while Muthoni Kuria, a member of the board, takes over as acting Chair.
No reason has been given for the sudden resignations although sources indicate they came at the insistence of the Central Bank of Kenya.
Governor Patrick Njoroge who has CEOs of Kenyan banks literally shaking in their boots would not be drawn into discussion over Chase Bank during a media briefing earlier today.
Questions have been raised regarding Chase Bank's momentous swing from a healthy profitable position at the end of the nine months to September 30, 2015 only to plunge into loss territory at the end of December 31, 2015.
The bank reported a loss of Sh790million.
Chse is a tier III bank popular with SMEs and especially contractors and suppliers who favour it for funding their LPOs.
Last week it announced a Sh5billion credit facility from the African Development Bank for onward lending to SMEs.
Last year it came to the market with a corporate bond which was oversubscribed.