: Former Equity Bank CFO David Ngata joins I&M Group as CFO, enhancing leadership with over 25 years of experience in global banking and finance.

By Charles Wachira

In a significant leadership shakeup, I&M Group has appointed David Ngata as its new Chief Financial Officer, effective October 16, 2024, in a move aimed at bolstering its executive team.

 Ngata, the former CFO of Equity Bank, brings over 25 years of financial expertise and global experience that promises to drive I&M’s growth in Kenya and across East Africa.

 Known for its customer-focused financial solutions in corporate banking, retail services, and asset financing, I&M Group is set to benefit greatly from Ngata’s deep understanding of both regional and international finance.

An Impressive Global Career

Ngata’s career spans an impressive roster of roles in top-tier financial institutions. David Ngata Joins I&M Group as CFO.

Before joining Equity Bank in 2018, he worked at American Express in New York, where he sharpened his insights into global financial management. 

He also served as an Audit Senior Manager with KPMG, working in both Kenya and the United States.

 This wealth of experience has equipped Ngata with a keen eye for operational efficiencies, regulatory compliance, and strategic finance management, all of which he brings to his new role at I&M.

A Transformative Role at Equity Bank

At Equity, Ngata’s role as Group Finance Director saw him overseeing finance teams across six countries: Kenya, Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of Congo. 

His leadership was instrumental in Equity’s remarkable growth across East Africa, as he developed cross-border financial strategies, implemented risk management frameworks, and introduced cost-efficiency measures that helped the bank navigate through challenging economic periods.

 In 2022, he was promoted to CFO, where he continued to guide Equity’s financial direction, reinforcing its position as one of East Africa’s top financial institutions.

Academic Excellence and Professional Credentials

Ngata’s academic credentials complement his extensive professional background. 

He holds a Master of Science in Business Analytics from Carnegie Mellon University and a Bachelor of Commerce in Marketing from the University of Nairobi.

 His Certified Public Accountant (CPA-K) qualification, along with memberships in both ICPAK (Kenya) and AICPA (USA), highlights his commitment to high standards in finance and professional excellence.

Positioning I&M Group for Growth

Ngata’s move to I&M Group comes at a crucial time as the bank aims to enhance its footprint in the competitive East African banking sector, where digital transformation and evolving customer needs are reshaping the industry.

 David Ngata Joins I&M Group as CFO, filling the gap left by former CFO Amit Budhdev, who exited in December 2023.

 Ngata’s strategic mindset and vast experience are expected to play a pivotal role in shaping I&M’s financial strategies, optimizing risk management, and seizing new growth opportunities.

A Future of Resilience and Innovation

Industry analysts are optimistic about Ngata’s impact on I&M Group, noting that his leadership could help the bank strengthen its market position and continue innovating to meet customer needs. 

David Ngata Joins I&M Group as CFO. As Ngata steps into this key role, he is set to lead I&M’s financial team toward new heights, positioning the bank for a future defined by resilience, growth, and transformative finance solutions in East Africa.

DTB Kenya appoints Murali Natarajan as CEO, aiming for growth, digital expansion, and SME support in Kenya’s competitive banking landscape.

In a strategic move poised to deepen Diamond Trust Bank’s (DTB) leadership in Kenya’s banking sector, Murali Natarajan, a veteran banker from India, has taken the helm as the new Managing Director and Chief Executive Officer.

Natarajan’s appointment is not only a significant leadership change for DTB but also marks a crucial step in the bank’s continued evolution and resilience in a competitive landscape.

Murali M Natarajan a Veteran Banker with a Vision

With over three decades in banking, Murali Natarajan has built a reputation for steering banking institutions toward growth, especially in challenging economic environments.

 Known for his customer-centric approach and operational acumen, Natarajan brings a wealth of experience from his previous roles in top-tier financial institutions, notably in India, where he played a key role in transforming banks through innovation, efficiency, and prudent risk management.

DTB’s Regional Expansion and Digital Push

Under Natarajan’s leadership, DTB is expected to sharpen its strategic focus on regional expansion and digital banking transformation. 

The bank, already a key player in Kenya and the East African region, has seen steady growth in its network and asset base, expanding its footprint in Uganda, Tanzania, and Burundi.

 Natarajan’s extensive background in digital banking and microfinance offers DTB a unique opportunity to capitalize on the growing demand for digital financial services in East Africa.

Given the increasing competition in Kenya’s banking sector, where over 40 banks are vying for a share of a rapidly digitalising market, Natarajan’s digital-first approach could provide DTB with a competitive edge. In India, Natarajan was recognized for rolling out digital solutions that improved customer engagement and broadened financial inclusion.

 For DTB, which is looking to increase its digital footprint and integrate more accessible banking solutions, this experience could prove invaluable.

Addressing Challenges in Kenya’s Banking Sector

Natarajan’s appointment comes at a time when Kenya’s banking industry is navigating a mix of regulatory pressures, evolving consumer expectations, and economic headwinds.

 The sector has faced increased scrutiny from the Central Bank of Kenya, which is pushing for more transparency, stronger governance, and digital inclusivity. 

Furthermore, with Kenya’s inflation and interest rates creating volatility, Natarajan’s strong background in risk management could be instrumental in steering DTB through economic uncertainties.

The veteran banker’s experience will likely play a crucial role in addressing the rising demands for loan restructuring and risk mitigation, especially as more customers and businesses seek financing in a post-pandemic economy.

 His tenure at various financial institutions has shown his adeptness at balancing growth with caution, a skill set that will be essential as DTB positions itself as a key partner in Kenya’s economic recovery efforts.

Expected Impact on DTB’s Performance and Strategy

Industry insiders are optimistic that Natarajan’s experience will catalyze DTB’s growth trajectory.

 His focus on operational efficiency and digital innovation could lead to improved financial performance, while his understanding of micro and SME financing aligns with DTB’s mission to empower Kenya’s small and medium enterprises. 

His approach is expected to bolster DTB’s role as a supportive financial partner for SMEs, which form the backbone of Kenya’s economy.

By bringing in a seasoned executive with a global perspective, DTB signals its ambition to evolve beyond traditional banking.

 Natarajan’s previous success in pioneering initiatives like mobile banking, loan digitization, and customer-centric financial services could play a transformative role in DTB’s journey toward becoming a fully digitized, customer-first institution. His leadership will be instrumental in shaping DTB’s long-term strategy and resilience in a fast-evolving market.

Looking Ahead

Murali Natarajan’s appointment is a clear indicator of DTB’s commitment to scaling its impact within Kenya and the East African region. 

As he steps into his role, all eyes will be on how he leverages his international experience to drive DTB’s growth, strengthen its digital capabilities, and deepen its regional reach.

 For Kenya’s banking sector, his tenure promises to introduce new innovations and operational practices that could set a benchmark for other financial institutions in the region.

In a highly competitive sector, DTB’s choice to bring in a leader with Natarajan’s pedigree reflects a vision for growth, transformation, and resilience—qualities that could shape the bank’s future for years to come.

Kenya Power reports first dividend in 6 years post-debt relief, driven by profit growth, cost cuts, and a renewed focus on financial stability.

By Charles Wachira

Kenya Power and Lighting Company (KPLC), the primary electricity distributor in Kenya, October 30 announced its first dividend in six years, signaling a strong financial turnaround. This milestone comes on the back of successful cost-cutting and debt-reduction efforts, allowing the company to re-establish investor confidence and position itself for sustainable growth.

Debt Relief Phase-Out

In the past decade, KPLC has been weighed down by debt, with obligations to both local and international lenders. In 2018, the company secured a government-backed debt relief package aimed at stabilizing its finances and averting operational challenges. This support allowed Kenya Power to focus on restructuring, but with growing national debt concerns, the government phased out debt relief last year, pushing KPLC to pursue independent financial viability.

Speaking on the transition, KPLC CEO Eng. Joseph Siror said, “The end of debt relief has forced us to operate more efficiently, which has ultimately been beneficial. We’ve reduced wasteful expenditure, improved our revenue collection, and strategically restructured our debt. We’re proud to declare a dividend after years of financial difficulty, which is a testament to the success of our turnaround plan.”

Positive Financial Results

Kenya Power’s improved financial position is reflected in its 2023 fiscal results, with the company recording a net profit of KSh 7 billion, a 34% increase from the previous year. Revenue growth has been driven by a combination of increased customer connections, tariff adjustments, and a crackdown on electricity theft, resulting in higher collections. The company also slashed operational costs by 20%, contributing to a healthier cash flow.

Kenya’s Treasury Cabinet Secretary, John Mbandi, praised the achievement, saying, “Kenya Power’s return to profitability is not only a win for its shareholders but for all Kenyans who rely on a stable and efficient power supply. The company’s improved finances mean it can now reinvest in infrastructure to support the nation’s development goals.”

Dividend for Shareholders

Kenya Power announced a dividend of KSh 0.30 per share, the first payout since 2017. This move is a welcome relief for shareholders who have been patient through the company’s recovery period. “Our investors have been incredibly supportive throughout our journey,” Siror said. “We’re pleased to reward them for their trust and commitment to Kenya Power’s mission.”

Outlook and Challenges

Despite these positive results, Kenya Power faces ongoing challenges, including rising operational costs and pressure to shift to renewable energy sources. The company has already initiated steps toward diversifying its energy portfolio, aiming to increase the share of green energy in its mix to 75% by 2030.

“Transitioning to cleaner energy is critical for Kenya’s future,” said Energy Principal Secretary Alex Wachira. “We’re encouraged by Kenya Power’s efforts to modernize its infrastructure and integrate more renewables. However, achieving this goal will require continued financial discipline and government support.”

For KPLC, paying dividends is a mark of recovery and a signal that Kenya Power is ready to play a larger role in supporting Kenya’s economic growth.

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