Firms pull out all stops to pamper top CEOs amid fierce talent war

From left: KCB Group CEO Paul Russo, EABL Group Managing Director and CEO Jane Karuku, Safaricom CEO Peter Ndegwa and Equity Group CEO James Mwangi. [File, Standard] Blue-chip companies are sparing no expense to retain and attract top executive talent, with lavish compensation packages for CEOs becoming the norm. This trend is highlighted in newly released annual reports, which show significant pay hikes and perks for leaders of the nation's largest firms, including East African Breweries Ltd (EABL), major banks, and telcos. According to EABL's 2025 integrated report, Executive Directors Jane Karuku (Group Managing Director and CEO) and Risper Ohaga (Group Chief Financial Officer) saw their total remuneration rise substantially for the financial year to June 2025. Karuku's pay package climbed to Sh67.5 million, up from Sh61.4 million the previous year, while Ohaga's earnings increased to Sh46.0 million from Sh42.3 million. These figures are part of a much broader pattern of elevated executive pay. Earlier disclosures reveal that some of the chief executives of Kenya's top banks took home a combined Sh805.7 million in the financial year to December 31, 2024. For instance, KCB Group's Paul Russo saw his total compensation jump 40.8 per cent to Sh250.1 million over the period. NCBA's John Gachora's pay, on the other hand, stood at Sh208.3 million, and Standard Chartered Kenya's Kariuki Ngari's pay surged to Sh174.4 million. The generosity extends beyond banking. In the telecommunications sector, Safaricom-East Africa's most profitable company-has historically set the benchmark. Safaricom CEO Peter Ndegwa's total remuneration in the year ended March 2025 was Sh294.2 million, having risen from Sh252.3 million the prior year. This involved a salary of Sh98.7 million (Sh94.3 million-2025), a bonus of Sh116.7 million, non-cash benefits of Sh33.5 million, and an employee performance share award plan amounting to Sh45.3 million. Similarly, James Mwangi, the long-serving CEO of Equity Group, saw his pay go up in the last financial calendar for the lender. For the 2024 financial year, his total compensation was reported at Sh166 million, higher than the Sh158.8 million he received the prior year. Centum CEO James Mworia earned a compensation package of Sh64.52 million in the year ended March 2025, the same as the previous year. Analysts and company executives reckon the rationale behind these lavish packages is clear: top companies believe that strong, stable leadership is critical to navigating economic uncertainty and driving growth. These packages typically include base salary, hefty performance bonuses, long-term share incentives, and a suite of benefits such as luxury car allowances, premium medical cover, club memberships, and security details. Despite headwinds like inflation and reduced consumer spending, sectors like banking, telecommunications, and FMCG have continued to post robust profits. EABL, for instance, reported a 12 per cent increase in profit after tax to Sh12.2 billion for its financial year ended June 2025. The banking sector's top-tier lenders collectively reported a staggering post-tax profit of Sh141 billion in the last financial year, enabling them to reward shareholders and executives handsomely. "We purposefully endeavour to maintain fairness and equity in employee remuneration and motivate high levels of performance in an affordable and sustainable manner," KCB Group stated in its recent compensation policy report, echoing a common sentiment among blue-chip firms. However, the trend has also drawn scrutiny. As ordinary Kenyans grapple with the high cost of living, the growing disparity between executive pay and average wages is becoming more pronounced. Some governance experts warn that excessive compensation could fuel public discontent amid calls for greater transparency. Nevertheless, companies argue that these packages are necessary to attract leaders who can deliver shareholder value. EABL's report emphasises its commitment to "growing diverse talents and building capabilities for the future," noting that its people are "at the core of the organisation's success." As the battle for top talent intensifies, Kenyan corporates show no signs of scaling back their efforts to pamper their CEOs. With performance-linked bonuses, equity incentives, and luxury perks now standard, the era of the super-paid Kenyan CEO is well and truly here, HR executives say.

Firms pull out all stops to pamper top CEOs amid fierce talent war

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Firms pull out all stops to pamper top CEOs amid fierce talent war

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