In 2024, the Kenyan banking sector was marked by excessive rates of interest, rising mortgage defaults, and a credit score freeze for small companies. However the heads of the nation’s 9 largest business banks had cause to rejoice, in keeping with disclosures of their monetary statements. KCB Group CEO Paul Russo earned $1.9 million (KES 250.2 million) in whole compensation — a 40.8% improve that made him the highest-paid financial institution government within the nation.
At NCBA, John Gachora took house $1.6 million (KES 208.4 million), whereas Commonplace Chartered’s Kariuki Ngari noticed his pay soar 43.5% to $1.3 million (KES 174.4 million). Of the 9 banks analysed, solely I&M Financial institution and DTB trimmed government pay. I&M’s Kihara Maina earned $537,817 (KES 69.3 million), down 9.7%, whereas DTB’s Nasim Devji took house $488,148 (KES 62.9 million), a 4.2% decline.
Elsewhere, the money stored flowing upward. At Absa Financial institution Kenya, CEO Abdi Mohammed was paid $852,126 (KES 109.8 million), a 39.8% improve. Stanbic Financial institution Kenya awarded its CEO, Patrick Mweheire, $741,148 (KES 95.5 million), up 12.8%. At Co-operative Financial institution, long-serving chief government Gideon Muriuki noticed his pay rise 11.7% to $1.3 million (KES 172.5 million), whereas Fairness Financial institution’s James Mwangi earned $1.2 million (KES 166.3 million), a modest 4.7% uptick.
Whereas Kenya’s high bankers secured document pay packages, households and SMEs endured among the hardest borrowing situations for the reason that COVID-19 pandemic, elevating questions over who the monetary system is de facto working for.
In whole, CEOs of the nation’s 9 largest banks pocketed practically $9.3 million (KES 1.2 billion) in 2024, at the same time as 1000’s of companies had been denied loans, inflation squeezed family budgets, and the Central Financial institution of Kenya (CBK) repeatedly warned that banks had been failing to direct credit score to the productive financial system.
“All we’re asking is for banks to be honest and to behave in the identical manner that they had been fast to lift lending charges when the coverage fee was growing and the treasury charges had been growing,” CBK governor Kamau Thugge mentioned in December.
“I believe it’s in banks’ curiosity to decrease their lending charges. In the event that they proceed on this path, it is going to be a no-win for anybody and the financial system will be unable to carry out.”
On common, government compensation rose by greater than 15%, at the same time as many lenders froze pay opinions for junior workers and accelerated cost-cutting by digital restructuring. Commonplace Chartered, for example, continued slimming its payroll by attrition regardless of delivering document income.
Boardroom pay moved in the identical route. At NCBA, administrators’ compensation surged 54.4% to $5.1 million (KES 660.2 million) — the very best amongst listed banks. Co-operative Financial institution’s board earned $3.6 million (KES 473.4 million) (+28.1%), whereas StanChart’s administrators acquired $2.9 million (KES 378 million) (+17.4%). Solely I&M and KCB diminished board payouts, with KCB Group slicing administrators’ pay by 20%.
Kenya’s banking sector posted a document $2 billion (KES 262.3 billion) in pre-tax revenue final yr, buoyed largely by revenue from authorities securities and widening curiosity margins. By locking into high-yield Treasury devices, banks booked simple returns whereas sidestepping the dangers of lending to struggling households and small companies.
