We asked top management of NBK to leave, Governor Njoroge confirms


30 Mar 2016 | by
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We asked top management of NBK to leave, Governor Njoroge confirms

The Central Bank of Kenya (CBK) has welcomed the sacking of the National Bank of Kenya (NBK) Managing Director and five of the bank's top managers

In a statement issued issued late on tuesday evening, CBK said it had met with the chairman of the board of NBK and some its directors. "The NBK board briefed CBK on the emergent concerns and their proposed actions going forward", the statement issued by the bank's regulator said. Sources at CBK intimated to the Gazette Weekly that NBK board members were summoned by the governor Dr Patrick Njoroge after the lengthy meeting last Thursday that saw the bank's MD Munir Ahmed relieved of his position.

However, when the board members emerged from CBK offices opposite the imposing Times Tower, they had instructions to off-load another five top managers and appoint Wilfred Musau as the acting CEO. Musau was responsible for retail and banking services. Prior to joining NBK six months ago, Musau was a senior manager at the NIC bank.
The CBK governor who has adopted a no-nonsense approach in dealing with banks after the collapse of Dubai Bank and Imperial late last year directed that the head of corporate affairs Boniface Biko, ICT boss Mohammed Abdalla, Credit/Risk officerGeorge Jaba and Chief finance officer Kivi be sent on compulsory leave pending a thorough audit of the bank.
The statement from Dr Njoroge welcomed the action taken by the board and said they would strengthen NBK while maintaining smooth operations to protect the financial system.
According to the NBK more changes are expected at the bank on Wednesday to conform with the agreement they reached with the CBK Governor.
It should be noted that NBK is the only financial institution that is yet to release its financial report for 2015. All banks are expected to have issued their reports by March 31 every year.
The bank had earlier warned its clients and shareholders that last year's results would be down by at least 25 percent.

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