Family Bank settles on its new CEO

Family Bank Chairman Wilfred Kiboro (left) and Managing Director Peter Munyiri during the institution’s annual general meeting at KICC, Nairobi, on April 22, 2016. PHOTO | SALATON NJAU | NATION MEDIA GROUP

What you need to know:

  • Mr Kiboro told the bank’s AGM that the CBK’s approval would pave the way for a “smooth transition” in the mid-sized lender, enabling the new CEO to lead the implementation of its growth plans.
  • The institution started in 1984 as a micro financier — Family Finance Building Society — before converting into a fully-fledged commercial bank in May 2007. The lender currently has 91 branches.

Family Bank has already picked a new CEO to succeed outgoing boss Peter Munyiri and he is only awaiting the Central Bank’s approval, chairman Wilfred Kiboro said on Friday.

Mr Kiboro told the bank’s AGM that the CBK’s approval would pave the way for a “smooth transition” in the mid-sized lender, enabling the new CEO to lead the implementation of its growth plans.

“The board has actually picked a CEO. We are just seeking approval from the Central Bank of Kenya. We expect a smooth handover. The transition is being handled very well,” said Mr Kiboro, on the sidelines of the lender’s Annual General Meeting held at the KICC in Nairobi.

Mr Munyiri is set to leave in June when his contract expires, marking the end of a five-year tenure for the career banker.

Prior to joining Family Bank, Mr Munyiri had held senior positions in the Co-operative Bank, Standard Chartered Bank and Barclays Bank of Kenya.

He rose to the position of deputy chief executive at the KCB Group before moving to Family Bank in 2011.

Mr Kiboro praised Mr Munyiri’s tenure at Family Bank, saying he had spearheaded a successful expansion and growth strategy.

“It is extraordinary what he has done during his five-year tenure,” said Mr Munyiri, citing the lender’s near five-fold growth in its assets base since 2011.

“When he joined the bank in 2011 the assets stood at Sh26 billion, as he leaves the assets are at Sh81.2 billion. This is a huge and incredible growth also reflected in our profitability,” said Mr Kiboro.

Mr Munyiri said he is leaving the bank with his head held high after “successfully leading an ambitious growth strategy” during the five-year period.

“Family bank sits right in my DNA. The five-year period is like 10 years for me. We put in a lot of work as real change managers,” said Mr Munyiri.

The homegrown lender posted a Sh1.98 billion full-year net profit in the period ended December 2015.

The institution started in 1984 as a micro financier — Family Finance Building Society — before converting into a fully-fledged commercial bank in May 2007. The lender currently has 91 branches.

During the AGM, the shareholders approved a rights issue targeting to raise Sh4 billion later in the year to fund its expansion plans. They also approved the setting up of a non-operating holding company.

“We will be changing our name from Family Bank Limited to Family Bank Group Plc, which will be a non-operating company that will then own a subsidiary that will be known as Family Bank Kenya Limited,” Mr Kiboro announced.