Game of high stakes as banks go after super talents

By Jackson Okoth

Banks have renewed the fight for rare but talented executives, only months after a period of relative calm.

The move has rattled those whose senior executives have been targeted.

While the industry has been expanding, pulling in huge profits, industry players say the pool of financial talent has not expanded as fast.

The move is aimed at netting creative talents who can incentivise them against increasing competition.

The scramble has been due to lack of fresh and experienced personnel. High turnover is not confined within the senior executive suites but also middle level managers and backroom personnel.

 “The search for competent staff is one of the biggest challenges facing Kenyan banks today,” said Kimani Njoroge, a Consulting Partner at Deloitte Kenya. “While this problem is not confined to the banking sector alone, it is here where competition for the small pool of experienced executives is most critical.”

While the banking industry has focused on training its staff on transaction issues, it appears to do little in leadership training and career development.

Perhaps this is why there is such as high demand for the few executives, who have the leadership skills needed as banks expand their horizons.

“Those banks that have staff turnovers have to incur extra cost each time they come to the market to recruit replacements and this is disruptive to their operations and costs,” said Njoroge.

Executives who move along between banks also end up commanding higher perks, pushing up staff costs whenever they join a new firm.

“It is a challenge for banks to find senior-level talent with international expertise and local understanding. A higher salary is not the main driver of why we move but the prospect of a better career,” said one bank executive.

Bank replacements

In the past weeks, Equity Bank has had to do internal recruitment to replace key managers, who have left the bank.

On the list of senior managers who have exited from Equity Bank includes Samuel Makome, who becomes the KCB Chief Business Officer, Kenya.  Prior to joining KCB, he was the Managing Director, Equity Bank Tanzania.

KCB has also netted Collins Otiwu who becomes its Chief Financial Officer. He joins the bank with nine years’ experience in senior management roles within finance and accounting.

 Otiwu was previously a Finance Director at Equity Bank Kenya. “I would like to reiterate that these changes are driven by the business needs and will enable the bank to focus on its objectives of improving customer service,” said the KCB Group Chief Executive Officer Joshua Oigara.

“This will lead us through innovation, growing market share particularly in Small and Medium Enterprises and further reducing our costs.”

Early this year, KCB began implementing a voluntary retirement programme that led to about 150 people leaving in a move expected to address growing staff costs.

KCB, the country’s biggest lender by balance sheet size of Sh367 billion, has a presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan and Burundi. This could explain its high appetite for senior executives to drive the huge balance sheet and regional network.

Its closest rival Equity Bank Group, also a big hitter in the retail segment, has also been busy revving its executive suite.

Hildah Mugo, its director of operations is from Barclays Bank of Kenya (BBK) while Isaac Mwige, a relationship banking director previously worked with Standard Chartered Bank as the Director, Transaction Banking, East and West Africa.

Staff poaching

Fredrick Omondi, General Manager Finance has previously worked for K-Rep Bank and NIC Bank. State-owned National Bank of Kenya, which has acquired a new brand image, has also been involved in staff poaching.

The most notable on its executive suite is Managing Director Munir Ahmed.

He joined banking in 1996 as a manager for SCB (K) Ltd for Nairobi where he rose through the ranks to Head of Compliance and Assurance for Standard Chartered for East Africa. 

The other executive who has joined the NBK from SCB is Samson Okero, who also started his banking career at SCB in 1995.

His last assignment before joining NBK as director, corporate and institutional banking was CfC Stanbic Bank in January 2012 as Head of Corporate Banking.

Family Bank has also been a beneficiary of the talent war in the banking industry, attracting Peter Munyiri as its managing director.

Munyiri has worked at executive levels with KCB, Cooperative Bank of Kenya, SCB and BBK.

Njung’e Kamau, Director Finance & Strategy at Family Bank was the Finance Manager at Equity Bank. Also on the Family Bank executive suite is David Thuku, Director- Retail Banking.

Thuku is a career retail banker with over 20 years’ experience mainly from Barclays Bank and Standard Chartered Bank.

His latest roles at Barclays Bank before joining Family Bank included serving as the Head of Secured Lending, Head of Business Banking and Retail Director at Barclays Bank Seychelles

 Ruth Murage is the Head of Institutional at Family Bank. He was appointed to the position of Head of Institutional Banking in August 2011.