Mid-tier lender Family Bank will have to scout for a new boss after its current Chief Executive Officer Peter Munyiri announced that he will relinquish his position in June.
Munyiri, who joined the bank in 2011 following the resignation of former CEO Peter Kinyanjui, will not seek to renew his five-year contract that ends in June.
In a statement, Munyiri thanked the board for according him the opportunity to grow the bank’s business from the micro-finance model that had been established by the former CEO. “The five years accorded and the support from our board of directors has enabled my management team to meet the ambitious targets set by our shareholders,” said the CEO.
According to the bank’s board of directors chaired by Wilfred Kiboro, Munyiri will continue serving as CEO as the bank looks for a suitable successor. This will enable the bank to have a smooth transition. “We will embark on the process of choosing a successor over the next six months, who will guide the bank further in this ambitious growth,” said Kiboro.
He said since 2011 when Munyiri took over, the bank’s pre-tax profit has grown from Sh502 million to Sh3 billion in 2015. “Munyiri has spearheaded a major successful transformation. The bank has achieved a five-fold increase in profits and quadrupled its assets over the same period,” said Kiboro. However, his success may be shadowed by the National Youth Service scandal.
The bank was adversely mentioned in the Sh791 million scam at NYS, which forced the Director General, Nelson Githinji, to step aside last year. The money was first wired into Form Home Builders, an account at Family Bank before it was redistributed to other banks. While the bank distanced itself from the scam, it later on sent home nine of its managers who were linked to the transactions.
Family bank terminated employment for nine of its employees who were adversely mentioned in the scam. The decision by the bank came a month after the Director of Public Prosecutions Keriako Tobiko directed seven managers to be probed by Directorate of Criminal Investigations (DCI) after being linked to a scandal that recently led to the exit of Devolution CS Anne Waiguru and PS Peter Mangiti.
