Uchumi picks Kipng’etich from Equity Bank as new CEO

KENYA: Uchumi Supermarkets has picked conservationist, Julius Kipng’etich, from Equity Bank to lead its turnaround and deliver it from its financial troubles.

The retail chain said late yesterday that it had selected the accountant, who has been the deputy chief executive at Equity Bank since 2012, as the substantive replacement to Jonathan Ciano who was fired in June.

Kipng’etich would be a surprise pick, as Uchumi’s General Manager, Owino Ayodo, had widely been anticipated to be confirmed to the top job.

“He brings on board a wealth of experience in leadership, business reorganisation, turnaround management and strategy execution that are needed to get Uchumi back on track,” said the firm in a statement.

TRACK RECORD

Kipng’etich is also credited to having turned around the Kenya Wildlife Service (KWS) from a regular State parastatal to an outfit that now runs like a business. Under his watch, gate collections in the various game parks and reserves were streamlined giving rise to revenue collection – a success that must have informed his selection.

In the first interview as the Uchumi CEO, he told The Standard last evening that he will sort the mess at the retail chain and ensure customers never miss products on Uchumi’s shelves.

His priorities would include reorganisation of the balance sheet to ensure there was sufficient cash flows that would ensure supplies were paid as soon as possible.

“I will not allow members of my staff to be suppliers,” warned the new boss.

Conflict of interest among senior employees, who doubled up as key suppliers, had been cited among other reasons as having driven down Uchumi’s competitiveness in the market. The new CEO arrives at Uchumi less than a week after the firm announced the arrival of Willy King’arai from rival, Naivas Supermarkets, who describes himself as a retail guru.

Board chairperson, Khadija Mire, said the appointment of King’ara was part of the company’s effort to fast-track its turnaround process by improving governance and operational efficiency.

“Willy has an outstanding track record in leading business growth and re-positioning the retail sector in this country and brings on board essential leadership expertise that is key to the success of our turnaround strategy,” explained Ms Mire.

At Naivas, King’ara was in charge of business development, marketing and information and communications technology. Uchumi fired Mr Ciano and his principle deputy and Chief Finance Officer, Chadwick Omondi, in what it termed as “gross misconduct and gross negligence” in mid-June.

Ayodo, the operations general manager, was selected to head the firm in an acting capacity after the exit of the top two officers.

The firm also suspended the retailer’s Michael Kibe, the human resources manager pending investigation of irregularities. Mire then said the recruitment for a new CEO and CFO would commence immediately in a bid to secure substantive replacements within the shortest time possible.

Mire said these measures taken were necessary to ensure the business is run on “sound principles of good corporate governance, irreproachable leadership and high integrity”.