By James Anyanzwa
Munir Sheikh Ahmed has taken over as the managing director of the National Bank of Kenya.
He was appointed to the top position after a competitive process, which began in March.
“National Bank of Kenya wishes to announce that after a rigorous and exhaustive interview process and approval by the Central Bank of Kenya, Munir Sheikh Ahmed, has been appointed as the managing director of the National Bank,” read a statement the bank released.
Mr Munir replaces long-serving MD Reuben Marambii, who retires on December 31. In a statement on Thursday, the bank said Munir would report for duty on August 1, and effectively take over on September 1.
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“Mr Marambii will proceed on terminal leave pending his retirement on December 31,” the bank said.
Munir is a senior banker with an all-round experience, from the Standard Chartered Bank where he is currently serving as the Head of compliance and assurance for the east African region.
Marambii’s 13-year tenor has left the 43-year-old bank struggling to keep pace with its peers within the competitive banking environment.
NBK entered into the labour market in March this year with a view of recruiting a high calibre, result oriented and self-driven professional with capacity to spearhead growth and diversification strategies in order to accelerate the bank’s profits, dividends and shareholder value.
The bank suffered a nine per cent drop in profitability last year and blamed the decline on taxation on realized bond earnings and increased provisions for bad and doubtful debts.
Its profit before tax plummeted to Sh2.4 billion, up from Sh2.6 billion in the previous year.
Divestiture
This compared unfavourably with its peers in the industry, which posted double digit full-year growth.
NBK is planning to pay its second dividend since 1997, as the Government attempts to sell a controlling stake to investors.
Before its first dividend payout for 2010, NBK had to use profits to cover old losses back to when the bank was plundered by the political elite who took up loans and failed to repay. After the losses were fully covered, the bank started to make pay outs to shareholders.
The shareholders are expected to approve a dividend pay out of Sh0.15 per share to preference shareholders and Sh0.4 per share to ordinary and participating shareholders during the bank’s 42nd annual general meeting scheduled for today.
