Kenya’s bank Chief Executive Officers (CEO) have for a long time been believed to be pocketing millions of shillings every year. The latest listings of earnings of these CEOs proves that fact.
It is reported that the six highest-earning bank CEOs took home a total of Ksh1 billion in salaries, allowances and bonuses last year alone.
This is due to the increased profitability of the lenders even as other sectors of the economy face financially challenging times.
The chiefs are also claimed to be taking home nearly twice their basic salaries in bonuses and allowances on average.
Leading the pack, Co-operative bank’s boss Gideon Muriuki is noted to have been the highest paid CEO in the last financial year, going home with Ksh376 million.
He was followed by Kenya Commercial Bank (KCB)’s boss Joshua Oigara, who pocketed Ksh273 million.
The two chiefs attributed the bulk of their salaries to performance-based bonuses. Whereas Muriuki’s basic salary for the year was Ksh105.5 million, Mr Oigara’s was Ksh68 million.
Responding to queries on the CEO’s pay, KCB noted: “The main driver for the increase in the executive directors’ pay was bonus payment, which is performance-based and an enhancement in the bonus policy for employees,” said KCB in an earlier response to queries on the CEO’s pay.
“Bonus and salary adjustments for staff are tied to achievement of multiple metrics, including profitability of the group and at all times reflect the bank’s performance in a year,” they concluded.
The duo were followed by Standard Chartered CEO Lamin Manjang, who left the Kenyan unit in December 2018, taking with him Ksh100.9 million.
NIC Bank MD John Gachora recorded a decrease in his salary as he got Ksh95.9 million as opposed to Ksh98 million in 2017.
Barclays Bank CEO Jeremy Awori has been listed fifth for being paid Kah66.8 million.
The list was concluded by Former HF managing director Frank Ireri who was paid Ksh64.1 million.
According to reports, the average employee of these six banks earns nearly 64 times less than these CEOs. The median bank worker was paid on average Ksh2.64 million in the year under review or Ksh220,200 per month.