Uchumi appoints Jamii Bora chief to its board

Corporate News

Jamii Bora Bank CEO Sam Kimani. FILE PHOTO | DIANA NGILA |  NATION MEDIA GROUP

By VICTOR JUMA, vjuma@ke.nationmedia.com

In Summary

• JBB chief Sam Kimani has extensive experience in banking, having served as deputy CEO and finance director of KCB.
• He has also held several executive positions at the Central Bank of Kenya.
• His skills are expected to help the retailer in structuring its financing, including borrowings.

Jamii Bora Bank (JBB) chief executive Sam Kimani has been appointed to the board of Uchumi Supermarkets after the lender acquired a 15.8 per cent stake in the retailer, making it the single-largest shareholder.

Uchumi also appointed Margaret Kositany and oil marketer Vivo Energy’s CEO Polycarp Igathe as independent directors, to fill vacancies in the retailer’s board.

Mr Kimani said the new appointments will boost the skillset of Uchumi’s boardroom. He has extensive experience in banking, having served as deputy CEO and finance director of KCB.

“We need to go in there and first familiarise ourselves with the company’s operations,” said Mr Kimani when asked what his top priority for the retail chain will be.
The JBB boss has also held several executive positions at the Central Bank of Kenya.

His skills are expected to help the retailer in structuring its financing, including borrowings.

Mr Igathe has significant experience in fast moving consumer goods, having served as the MD of Haco Tiger Brands which produces and distributes stationery, home and personal care products.

Ms Kositany has long experience in marketing, having worked as marketing director for Airtel then trading as Zain. She is currently the sustainability director for Ericsson Sub-Saharan Africa.

The appointments are expected to be ratified at Uchumi’s annual general meeting (AGM) in November.

JBB amassed the 15.8 per cent stake starting in November last year when Uchumi launched a rights issue that raised Sh895.8 million. Its stake includes shares held by affiliate Goodwill Ltd, a minority investor in Uchumi.

READ: Jamii Bora ousts Treasury as top Uchumi owner

Uchumi priced the cash call at Sh9 per share, offering 99.5 million new shares at a rate of three for every eight held.

This almost matched the price of its stock trading on the Nairobi Securities Exchange at the time, bucking the trend where firms usually offer large discounts to encourage uptake of their rights.

Shareholders applied for a total of 64.3 million shares worth Sh579.1 million in the original allotment, representing a 64.6 per cent subscription as a section of shareholders failed to take up their rights.

Uchumi, however, received applications for additional 118.3 million shares worth Sh1 billion from shareholders keen on defending and raising their stakes in the company.

The firm took only Sh895.8 million shares, with those applying for extra stocks allotted on a pro rata basis. JBB is among investors that bought into Uchumi aggressively, which saw it emerge as the single largest investor.