The London-based International Banker has named Kenya’s Cooperative Bank chief executive Gideon Muriuki the “Africa banking CEO of the year”.
A write-up by Cary Springfield of International Banker said the Co-operative Bank of Kenya (Co-op Bank) was one of Kenya’s fastest growing banks.
“The bank’s CEO continues working hard to make Co-op Bank the leading Kenyan bank by providing innovative financial services to customers, thereby benefiting stakeholders, the community and Kenya’s economy,” Springfield says in the article..
Dr. Gideon Muriuki became the Managing Director in March 2001. At the end of the fiscal year, the bank reported a 60% reduction in their 2000 losses. In the year 2002, the turnaround was official when the bank reported a profit of Sh103 million.
During the following years, the bank saw amazing growth. By the end of 2007, Co-op Bank recorded a profit of Sh2.3 billion and declared an eight per cent dividend, its highest payout by far in years.
Dr. Gideon Muriuki’s contribution to the growth and success of Co-op Bank is undeniable. He was, in fact, awarded the Honourary Degree of Doctor of Business Leadership for the successful turnaround of the bank and entrenching the unique co-operative model in Kenya’s financial market.
Under his watch, the bank not only recovered from an adverse non-performing loan record, it has also greatly increased its customer base. Since his appointment as CEO, the bank has seen customers increase from 125,000 to 4 million, currently.
Its branch network also grew from 30 branches to over 130. Dr. Muriuki also contributed to the bank’s reforms that led to its listing in the Nairobi Stock Exchange.
During the awards ceremony where he was honoured for his business accomplishments, he expressed that while he was happy to see the good financial performance of the bank, he was even happier to be able to work with an institution that contributes to improving the welfare of the majority of the Kenyan people.
In September of 2013, Co-op Bank began operations in South Sudan. The bank opened its central office in Juba. The bank now operates as the Co-operative Bank of South Sudan. It has plans to set up branches in all of the country’s ten states.
The Co-operative Bank of South Sudan was established as a Joint Venture between Co-op Bank – who hold a 51 percent stake – and the government of South Sudan, holding the other 49 per cent. The bank will transfer the 49 per cent to Sudan’s co-operative movement in a three-year period.
Co-op Bank has also gone to great lengths to reach out to Kenya’s underprivileged students.
According to Dr. Muriuki, education is one of the most costly expenses for families, while at the same time is the means that is most likely to liberate them from poverty.
In 2014, Co-op Bank increased its secondary school scholarships to just over 2,800 students in the next four years. Bright but financially disadvantaged children from all over Kenya can receive the scholarships.
Co-operative societies identify the children that qualify for the programme and take their names to a regional forum where delegates decide which children are most deserving of a scholarship. In each region, the four students who perform the best during their secondary school education are awarded full scholarships for their university education.
The Co-operative Bank Foundation, which funds the scholarship programme, began in 2007. As of 2014, the programme has helped over 5,000 bright children to receive an education that would not have otherwise received.
Although the bank has seen difficult times, with the help of Dr. Gideon Muriuki, it went from huge losses to reporting excellent profits in the span of just a few years.
