Family Bank Board appoints Rebecca Mbithi new CEO

One of the Family Bank branches in Nairobi (PHOTO: FILE)

NAIROBI, KENYA: The Board of Family Bank has appointed Rebecca Mbithi as the Chief Executive Officer, subject to approval by Central Bank of Kenya.

She replaces David Thuku who resigned in September 2018.

Mbithi is currently the Company Secretary and Director, Legal Services at Family Bank - a position she has held for the last four years.

She holds a Masters in Business Administration (Strategic Management) from the United States International University and an LL.B degree from the University of Nairobi.

She has previously worked at the Kenya Tea Development Agencies and Rift Valley Railways. At Family Bank, she has been instrumental in Strategy and Business Development, Capital and Debt Raising, Risk Management, Compliance and Controls, providing legal services and strengthening the Bank’s Governance structures.

If approved by CBK, she will take on a bank which struggling to find its place in a disrupted market from small lenders where she is bound to face challenges of raising funds, hawkish market consolidation and securing earnings under the rate cap law.

Family Bank jumped back into profit-making territory, announcing net returns of Sh101.5 million in the first half of 2018 on cost containment and digital banking from a Sh492 million in a similar period in 2017.

Total operating expenses fell by 11.9 per cent, closing the period at Sh3.1 billion from Sh3.5 billion, while income grew to Sh210 million on increased fees and commissions. Customer deposits, on the other hand, grew to Sh47.8 billion.

Several small lenders have switched bosses to navigate the tricky environment including Jamii Bora  whose Deputy Chief Executive Timothy Kabiru has replaced Samuel Kimani.

Mortgage lender Housing Finance that saw long-serving boss Frank Ireri replaced by former NIC Bank Director for Retail Banking Robert Kibaara.

Another mortgage lender, Shelter Afrique, also saw the occupant of the corner office leave, swapping Nigerian Femi Adewole for Zimbabwean national Andrew Chimphondah. Nigerian lender GT Bank also hired a new boss for its local operations last year, picking insider Jude Olabayo Veracruz who previously served as the Rwandan head.