EAC agrees on grain standards

Customers in the banking hall of a Fina Bank branch in Nairobi. FILE 

By GEORGE NGIGI

In Summary

• Guaranty Trust Bank Kenya has tapped Adekunle Sonola as CEO and Olaboyo Veracruz as executive director in changes that saw it name six new board members.
• Rajesh Kapoor, who has been acting CEO at Fina Bank since April, will now assume the role of director support services.

Fina Bank has shaken up its board and appointed a new CEO following the completion of its buyout.

The bank, which is rebranding to Guaranty Trust Bank Kenya, has tapped Adekunle Sonola as CEO and Olaboyo Veracruz as executive director in changes that saw it name six new board members.

Mr Sonola was group head of corporate banking at the London-listed Guaranty Trust Bank — which in December completed the purchase of a 70 per cent stake in Fina Bank.

Rajesh Kapoor, who has been acting CEO at Fina Bank since April, will now assume the role of director support services.

The changes were placed on the bank’s website on Tuesday. Other appointees to the board were former KCB corporate director John Mark Wandolo and former National Oil managing director Mary M’Mukindia.

Guaranty Trust Bank group CEO Olesegun Agbaje and his chief financial officer Ademola Odeyemi have also joined the board—reflecting the importance the Nigerian bank has placed on Fina Bank.

The bank acquired a majority stake in Fina Bank, set up in 1991, through a share purchase from current shareholders and direct investment in a deal valued at $100 million (Sh8.54 billion).

READ: CBK approves Fina Bank name change after buyout

The bank’s founder, Dhanu Chandaria, has been retained as chair of the board. Guaranty Trust Bank is eyeing expansion opportunities in East Africa after building operations in West Africa to tap into the region’s fast growing economies and infrastructure deals, especially oil and gas financing.

Fina Bank’s assets stood at Sh19.3 billion in September and its profits grew 66.6 per cent to Sh255 million in the first nine months of the year. It has branches across Kenya, Uganda and Rwanda.

The bank has been looking for between Sh2.6 billion and Sh3.49 billion as additional capital to fund its growth plans.

Guaranty Trust Bank had $10.76 billion (Sh930 billion) in net assets last December, or two-fifths of the Kenyan industry’s combined balance sheet of Sh2.33 trillion at the end of last year.

It joins West African peers UBA Kenya and Eco Bank which recently set up shop in Kenya.

The executive shake-up at Fina Bank comes at a time when the local banking seen has changed CEOs at a quick pace, ushering in new leaders in an industry that has maintained double-digit growth in the past five years.

Four of the banks listed at the Nairobi bourse have over the past year made changes to their corner offices including StanChart, Barclays, NIC Bank and KCB Group.

By GERALD ANDAE

East African Community members have agreed on new standards for grain which are expected to ease trade within the bloc and the overlapping Common Market for Eastern and Southern Africa (Comesa).

Kenya, Rwanda, Burundi, Tanzania and Uganda have harmonised the standards to eliminate trade barriers after they were adopted by the council of ministers last month.

“The grain sector has been faced with the challenge of poor quality across the region resulting from low standards, which has subjected traders to losses as a result of their grains being rejected at border posts,” said East African Grain Council (EAGC) chairman Judah Bett in Nairobi on Friday.

Mr Bett said grain will be required to have a moisture content of up to 13.5 per cent, rotten grain of less than four per cent and foreign objects of less than 0.4 per cent.

Kenya does not produce enough maize to meet its demand which stands at three million bags per month and relies on Uganda and Tanzania for replenishment.
Kenya faces a shortage of 10 million bags this year.

The deficit is expected be filled through cross border trade.