KCB axes 6 directors from National Bank board

KCB axes 6 directors from National Bank board.

KCB Bank has moved to assert its authority in the running of the National Bank (NBK) by shaking up the top management of its newly acquired lender.

KCB has replaced all but two directors of the struggling bank, including fiery trade unionist Francis Atwoli (pictured).

Only Jones Nzomo and Linnet Mirehane have been retained on the NBK board that will be chaired by John Nyerere, a director in KCB Tanzania and the chairman of KCB Capital – the group’s investment banking arm.

The move follows the completion of the takeover process where the shareholders of the struggling lender were issued with one KCB share for every 10 held.

NBK Company Secretary Habil Waswani said following the completion of all regulatory processes for the takeover, six former directors of the struggling lender have been replaced by a new team to be overseen by a new chairman. He said the exit of the former directors, who have “voluntarily retired” from the NBK board, paves the way for a smooth transition.

"The board seamlessly oversaw the takeover process that now gives both customers and shareholders a new lease of life in terms of greater business opportunities through National Bank becoming part of the KCB Group,” said Mr Waswani.

The bank said the sweeping changes have affected former National Bank Chairman Mohamed Hassan. Others replaced are Federation of Kenya Employers (FKE) President Mark Obuya, Clifton Energy East Africa Director Joseph Kering,  the National Treasury Cabinet Secretary as well as the National Social Security Fund (NSSF) Managing Director.

The removal of Atwoli and NSSF MD Anthony Omerikwa is a reflection of the dilution of NSSF’s shareholding after the takeover as the public pension manager controlled a 48 per cent stake in NBK. NSSF was handed a single seat on the new board to be represented by the chairman Rtd Gen Julius Karangi.