Long-serving Co-op bank chairman exits

Thursday September 14 2017

John Murugu, ex-director at Treasury and CBK,

John Murugu, ex-director at Treasury and CBK, to take over as Co-operative Bank board chairman effective October 1, 2017. PHOTO | COURTESY 

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Co-operative Bank of Kenya (Co-op) longest serving director Stanley Charles Muchiri exits after more than three decades at the lender's board.

Mr Muchiri joined the bank's board in 1986 as a non-executive director and was later appointed chairman in 2002.

“The Board of Directors has deeply appreciated Mr Muchiri’s transformational leadership and wished him the very best in all his future endeavours,” said Managing Director Gideon Muriuki in a statement Thursday.

Mr Muchiri is credited with steering the bank, as the board chairman, from loss-making territory in early 2000s to now one of Kenya's most profitable banks.

The Nairobi Securities Exchange-listed lender recovered from a loss of over Ksh2.3 billion (about $23 million) in 2000.

In the six months to June 30 this year, Co-op bank posted a net profit of Ksh6.6 billion (about $66 million).

As the announcement was made, the lender's share fell by 3.32 per cent to Ksh16 ($0.16) per share at 1.09pm from Wednesday's close of Ksh16.55 ($0.17). By close of trading Thursday, the share had however recovered to Ksh16.65, 0.6 per cent higher than the previous day's close.

Mr Muchiri, 71, will be replaced by John Murugu, who has previously worked at Treasury and Central Bank of Kenya, as chairman effective October 1, 2017.

Mr Muchiri's exit is in line with the Capital Markets Authority's governance code that sets the age limit of 70 for members serving in listed companies boards.

He holds 0.13 per cent shareholding in the bank, an equivalent to 6,253,333 shares.

Mr Murugu, who served as director of debt management at the Treasury, joined Co-op bank's board as independent director on May 27, 2015. He owns a 0.03 per cent (1,579,200) stake in the bank.

Mr Murugu, 66, served at the CBK for more than 25 years rising through the ranks to head the bank supervision's unit as the director. He was later seconded to Treasury.