NAIROBI, Kenya, May 17 – The Kenya Commercial Bank Group has scrapped two positions of deputy Chief Executive Officers in its new organisational structure in a bid to enhance productivity.
Under the first phase of the transformation program that kicked off in January this year, the bank has also eliminated the post of Public Affairs and Communication Director and that of Divisional Director of Special Projects.
In the new structure, the former deputies\’ posts which were held by Peter Munyiri and Samuel Kimani will be replaced by Chief Business Officers who will be in charge of local and regional operations.
"New positions of Chief Business Officer, International and Chief Business Officer, Kenya, have been created. The former will look after businesses outside Kenya; whereas the latter will oversee the Retail, Corporate Banking, Marketing and Communications, and Mortgages business within Kenya," Group CEO Martin Oduor-Otieno said.
Other new posts such as the Chief Operating Officer (COO) and Chief Finance Officer (CFO) position have also been established.
The COO will be in charge of Information Technology, Operations and Customer Service, Credit, and Logistics including Procurement, Facilities, Transport and Security. His CFO will oversee Financial Planning and Control, Treasury, Strategy, Innovations and New Business Opportunities.
The transformation program that was implemented on recommendation of global consultancy firm, McKinney Rogers, is also expected to help the bank cut its operation costs by about 20 percent.
With operations in Kenya, Tanzania, Uganda, Rwanda and Southern Sudan, KCB is the region\’s largest bank and with that comes increased operational expenses which have in turn strained its cost income ratio.
In 2009 for instance, its wage bill stood at Sh7.1 billion which was nearly 87 percent growth over that of 2005.
The bank is currently working on a strategic blue print that is expected to guide its quest to become a pan African bank by 2013 and hence the need to ensure that it is operating efficiently.
In this regard, Mr Odour-Otieno announced that the Executive Committee has been reduced from 22 to 7 members and will have new executive powers and a new mandate under the Chief Executive Officer.
"Except for the Chief Executive, all positions within the Executive Committee will be filled through a transparent, professional and competitive process, starting with an internal job interview process," he explained.
The bank will therefore enter into the second phase of the transformation program which will see the alignment of functions across the rest of the business to support the new structure.
In the meantime, the bank reports that the implementation on a pilot basis of a number of initiatives is already returning positive and exciting results focusing on improved efficiency, cost management and customer service.