KCB’s chief executive officer Joshua Oigara and chief financial officer Lawrence Kimathi are set for a five per cent basic pay rise after a similar increment last year, the country’s biggest bank has disclosed.
The new raise will cement the duo’s position among the highest-paid executives in the country, with the lender disclosing in its latest annual report that they took home a combined sum of Sh315 million in the year ended December.
“During the year 2017, there was a five per cent adjustment to the basic pay of the two executive directors sitting on the board with effect from 1 January, 2017,” KCB says in the report.
“The company proposes to make a similar adjustment to the remuneration level of the executive directors in the current financial year.”
Besides basic pay, they are paid allowances and bonuses. Mr Oigara’s salary rose 14 per cent to Sh65 million or Sh5.4 million per month in the year ended December 2017.
Mr Kimathi’s salary rose seven per cent to Sh29 million or Sh2.4 million per month.
KCB disclosed that Mr Oigara has signed a new four-year contract, a move that extends his tenure to 2021. He signed the new contract on January 1, 2018.
Rise to top
Mr Oigara, who was previously a chief financial officer (CFO) at the bank, was promoted to the CEO position on January 1, 2013 to replace Martin Oduor-Otieno.
Mr Kimathi has three years left on his five-year contract, which started on January 1, 2016.
The two executives have a three-month termination notice.
Mr. Oigara holds 35,157 shares in the bank currently worth nearly Sh2 million while Mr Kimathi is not a shareholder, according to the lender’s report.
Mr. Oigara rose to the leadership of the bank after Mr Oduor-Otieno had expanded the lender geographically to six markets in the region including Burundi and South Sudan.
Mr. Oigara is currently tasked with growing the bank amid increased regulatory scrutiny, more stringent accounting rules, a spike in bad debt and political backlash that saw the introduction of interest rate controls in Kenya.