Top managers at KCB to re-apply for their jobs under new structure

All senior managers of Kenya Commercial Bank, except the chief executive officer Martin Oduor-Otieno, are expected to re-apply for their jobs under a new organisational structure that could see some of them edged out.

In one of the most drastic shakeups in the country’s corporate world, senior management positions making up the bank’s executive committee have been whittled down from 22 to seven after a number were phased out and others merged.

“Except for the chief executive, all positions within the executive committee will be filled through a transparent, professional and competitive process, starting with an internal job interview process,” Mr Oduor-Otieno said Tuesday at the conclusion of the first phase of a restructuring programme launched in January this year.

Under the programme, East Africa’s largest bank by assets and customer deposits is seeking to increase its efficiency, cut operating costs, and improve customer service in a bid to boost earnings in the face of fierce competition.

KCB’s costs account for 70 per cent of its income compared to Barclays Bank of Kenya’s 61 per cent and Standard Chartered Bank’s 44 per cent with its staff costs taking half of the total expenses.

The restructuring in the industry has seen Barclays Bank sacking 200 managers early this year to curb employee costs.

“The second phase will see alignment of functions across the rest of the business to support the new structure,” he said of a restructuring that echoes one carried out by mobile phone firm, Safaricom, in March this year.

The new structure, which was approved by the bank’s board of directors at a meeting held yesterday morning, follows the recommendations of international consultants, McKinsey & Company.

The two deputy CEO positions — Group Controls held by Mr Samuel Kimani and Group Businesses held by Mr Peter Munyiri — the director public affairs and communication held by Mr Kepha Bosire as well the divisional director, special projects held by Ms Catherine Njoroge have been phased out.

Instead, a newly created position, the chief business officer — international will be in charge of the bank’s operations in the region — Tanzania, Uganda, Rwanda and South Sudan.

Mr James Agin is presently in charge of subsidiary support.

Another new position chief business officer Kenya, will oversee the retail and corporate banking, marketing and communications, and mortgages business within the country.

Currently, Mr Timothy Kabiru is in charge of retail banking, Mr John Mark Wandolo corporate banking and Ms Mary-Ann Musangi handles marketing, while Ms Caroline Kariuki oversees KCB S&L Mortgages.

A chief operating officer’s position has been established and will look after the information technology (IT), operations and customer service, credit, and logistics, including procurement, facilities, transport and security.

Dr Tony Gothic is currently the IT director, Mr Paul Tisane deals with operations while Mr Wilfred Sang oversees credit.

The holder of a newly created chief finance officer’s docket will oversee financial planning and control, treasury, strategy, innovations and new business opportunities.

Mr Stanley Towett is presently in charge of finance, while Dr Robert Ochola is handling strategy, research and innovation.

Some functions were retained and will continue reporting to CEO.

These are audit, currently held by Mr Fred Mutiso, risk, which is being handled by Ms Rose Kinuthia, human resources held by Mr Charles Maranga and company secretary held by Mr Kiprop Malakwen, but whose mandate has been widened to include legal, investor relations and KCB Foundation.