KCB: A bank in sync with the devolved governance system

KCB has continued to share in the vision of financial inclusiveness by “taking banking to the people”. Photo/FILE

What you need to know:

  • KCB has continued to share in the vision of financial inclusiveness by “taking banking to the people”.
  • The bank continues to lead from the front with social media engagement on YouTube, Facebook and Twitter.
  • Customers can also use the new Internet banking service (KCB i-bank) to do all their financial transactions from wherever they are without having to visit a branch.

Corporate governance refers to the system by which corporations are run.

The governance structure specifies the distribution of rights and responsibilities among different participants in the corporation.

The participants include the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders.

The governance system also specifies the rules and procedures for making decisions in corporate affairs.

It provides the structure through which corporations set and pursue their objectives within the context of the social, regulatory and market environment.

KCB has a robust Corporate Governance Strategy that has guided the bank’s operations in all its six operating markets across Eastern Africa, and also in the formulation of its strategy in the new devolved system of government in Kenya.

The strategy is based on the five key principles of corporate governance, namely, protecting the rights of shareholders; ensuring stakeholder interests are met; conducting all business with integrity and in an ethical behaviour; making full disclosures in a transparent manner about all dealings; and executing the Board responsibilities.


In exercising the five principles in all the areas of businesses that it participates in, KCB ensures that each shareholder gets value for their money while at the same time meeting customers’ diverse needs across the country.


On the regional front, each of the five KCB subsidiaries (Tanzania, South Sudan, Uganda, Rwanda and Burundi) is governed by a Country Board of Directors, who in turn report to the Group Board of Directors.


The Group Board of Directors has representation on the boards of the subsidiary operations. The group plays an oversight function in order to ensure the standardisation of the banks policies, procedures and financial reporting.

FINANCIAL INCLUSION


In August 2010, a new constitution was unveiled, ushering in a fresh system of governance in Kenya. It introduced a central government and devolved governments in 47 counties across the country.


By then, KCB was already poised to provide financial services across the country due to its unmatched physical presence across the geography of Kenya.

The bank is committed to ensuring financial inclusion and availability of financial services across all the counties so as to meet the dreams and aspirations of all Kenyans.


Through its branches, ATMs and Agents, KCB was present in all the district and county headquarters prior to the devolved system of government that took effect this year.

It can be said therefore that the bank was ‘devolved’ prior to the constitutional ushering in of the new system of devolution.


KCB has continued to share in the vision of financial inclusiveness by “taking banking to the people”.

The bank contributes to the Kenyan dream of devolution by providing Kenyans of every economic background and throughout the country in every county with an equal chance of accessing financial products and services tailored to suit their specific needs.


In addition to the physical presence across all 47 counties, KCB has a specialised unit that focuses on driving county businesses through collaboration with the respective county governments.


County Relationship Managers are currently in place in every county with a clear mandate to drive financial services uptake and foster good working relationship between the bank and the county offices.

This is to ensure that all the county citizens have easy and convenient solutions for making payments to the county governments.


Through these relationships, the bank has been able to tailor make products for different counties, such as special revenue collection accounts, leasing solutions for motor vehicle purchase, lease and purchase agreements for special machinery/equipment, check-off personal loans for county staff and mortgage schemes.

This is a key undertaking by the bank to bring banking and financial solutions closer to all the counties.


In addressing matters devolution, a unique kind is happening across the world with the emergence of Generation Y.

This customer base demands for and expects efficiency, effectiveness, convenience and affordability with minimum physical interface.


With this in mind, KCB is constantly creating products and services to suit these behaviours that set Generation Y apart from other customers.


Studies have shown that individuals in this group are always in touch with their mobile phones, are constantly checking for emails and text messages, are very engaged on social media and spend significant amounts of time online.


It is for this reason that KCB has in the past three years launched Bankika – a tailor made banking product that has no monthly charges and is designed to start the youth off on their journey towards financial stability.


It offers banking services (both deposits and borrowing) for both personal and business banking. In addition, KCB Mobi Bank offers comprehensive mobile banking solutions.

Customers can also use the new Internet banking service (KCB i-bank) to do all their financial transactions from wherever they are without having to visit a branch.


In October 2013, KCB once again launched a revolutionary new product – KCB M-Benki. It which enables customers to open an account, earn interest, get a loan, transfer money and do much more, all from their mobile phones.


KCB continues to lead from the front with social media engagement on YouTube, Facebook and Twitter.

Through these, we interact and exchange ideas with the youth who have taken to these channels to communicate with their service providers.


In addition, the bank introduced an interactive 24-hour chat option on the new and improved KCB Group website: CLICK HERE to find us and let’s chat.

Mr Makome is KCB’s Chief Business Officer, and MD Kenya.