K-Rep hires former Co-op manager as chief executive

Corporate News

A K-rep Bank branch along Kenyatta Avenue in Nairobi. PHOTO | FILE 

By MUGAMBI MUTEGI

In Summary

• K-Rep Bank has hired Titus Karanja in line with management and board changes that started last year after takeover of the bank by Centum Investments.

A former Co-operative Bank manager is set to take over as K-Rep Bank chief executive, replacing long-serving CEO Albert Ruturi who leaves the lender at the end of this month.

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The Tier-3 bank has hired the ex-Co-op Bank director for co-operatives banking Titus Karanja in line with management and board changes that started last year after takeover of the bank by Centum Investments.

“We offered Mr Karanja the job about two months ago and we engaged him sometime last week after receiving CBK’s approval,” said Centum’s chief executive James Mworia on Wednesday.

“He has a splendid track record with the largest co-operative movement in the country. He brings this experience to K-Rep which we plan to transform into a Tier-2 bank in the next four years with a keen focus on SMEs.”

Mr Ruturi had held the K-Rep chief executive position since 2010 when he took over from long-serving managing director Kimanthi Mutua.

Mr Ruturi, who has retired from banking twice only to return, has previously served as the acting MD at Barclays and as chief operations officer at KCB. He joined K-Rep Bank five years after leaving KCB.

“Mr Ruturi will continue working as a consultant for the bank for the next six months to ensure a smooth switchover,” said Mr Mworia.
K-Rep, which has 36 branches across the country, was late last year taken over by Centum after the investment firm bought a 67.54 per cent stake in the business as part of its portfolio expansion strategy.

The bank is set to be rebranded in September, according to the Centum CEO.

Mr Mworia said the rebranding of the 31-year old lender will reflect an ongoing upgrading of its systems and would retrain its 500 employees.

The bank’s net profit as at March 2015 was Sh171.8 million while its assets during the period dropped 17.2 per cent to Sh13.9 billion.

Its capital base stands at Sh2.4 billion, with Centum expected to pump in a further Sh3.6 billion from its recent Sh6 billion bond issue.

Centum’s new board line-up includes among others, Mr Mworia, Mr Karanja, Mr Mutua, Polycarp Igathe (Vivo’s managing director), Mary-Ann Musangi (a former KCB marketing director) and Catherine Wairi (the financial director at KPA).