Intrigues at National Bank undermined its performance

Is there more than meets the eye in the recent suspension of National Bank of Kenya CEO Munir Ahmed and other top managers by the Board? In the past two years, there has been a sustained media run on the bank’s management, with allegations of ‘mismanagement’ and ‘plunder’ of resources amid allegations that certain individuals within the government and from the private sector intended to buy the bank.

The media was also awash with reports that the management had resisted efforts by the government to consolidate the bank with Development Bank of Kenya, and Consolidated Bank, or that the government planned to sell the bank to a leading Qatari bank, and that management had declined to provide relevant data to transaction advisors appointed by the Privatisation Commission.