Over 10 top level managers have left the National Bank of Kenya over the past eight months in what insiders say could be a pointer to a bigger problem in the lender’s turnaround strategy.

Initiated by the chief executive Munir Sheikh Ahmed on assuming office in 2012, the plan was to put the bank in the top tier by 2017.
The latest to leave is executive director for retail and business banking, Mr Robert Kibaara, who left on Friday.

Mr Kibaara’s resignation leaves Mr Ahmed alone at the top. The other executive director, Mr Sam Okero, who headed the corporate and institution banking, left mid last year. Contacted for comment, Mr Ahmed did not return calls and text messages, even after asking for the questions to be sent to him.

TRIED TO RECRUIT

The lender advertised for Mr Okero’s replacement without success. Advertisements for the position have been published several times in local media and once in an international executive magazine.

Insiders point to the bank’s appetite for high risk loans as the main cause of disinterest among industry players to take up the position.

Other top level positions to have been vacated over the past six months include that of human resource director, head of credit, director of Islamic banking, head of retail, head of SME banking, head of medium enterprises and head of corporate communications.

The bank recently became the first public institution in the country to hire a Chinese national at directorship level. Ms Yao Sandra heads NBK product development function.

Early this year, Central Bank of Kenya delayed approving the lender’s annual licence on failure to comply with the capitalisation guidelines.

The problem arose due to delay by government to decide on the rights issue. In 2013, shareholders approved a plan to create an additional 800 million new ordinary shares to be floated in the issue that was then expected to raise about Sh10 billion to fund its expansion plans.

During the last financial year, the National Treasury allocated Sh5 billion to take-up of the rights issue but later changed its mind, allocating the money to other functions.

This year, the Treasury Cabinet Secretary Henry Rotich was equally mute on the matter. In 2014, the bank recorded 21.7 per cent net profit decline as high operating expenses and one-time restructuring costs weighed on its profitability.

The bank spent Sh1.1 billion to retrench 190 employees in a cost-cutting measure but operating expenses still increased 12.2 per cent to Sh7.5 billion. It reported a net profit of Sh870.7 million compared to Sh1.1 billion in 2013.

The bank will today hold a media briefing where it is expected to announce its new strategy.