A glimpse at a directors remuneration report, 2019 of Kenya Commercial Bank(KCB) Group shows that its Chief Executive Mr Joshua Oigara earned an annual pay of KSh 299.1 Million as an Executive Director and CEO.
This payment package earnings now place Waigara close to top of the ladder as one of the highest-paid executives in corporate Kenya.
His Gross pay is comprised of an annual salary of KSh 72 Million, cash bonus of KSh 143.3 Million, KSh 11.5 Million in allowances, KSh 21.6 Million as gratuity, non-cash benefits of KSh 300,000 and deferred bonus payments of KSh 48.4 Million.
Non-cash benefits includes medical insurance cover, club membership and professional indemnity cover.
Allowances paid include house allowance, car allowance, telephone allowance and any allowances related to loan benefit adjustment.
Gratuity is paid to directors at the rate of 30% of consolidated basic salary. The total gratuity is paid at the end of the contract term. Figures from KCB Group Integrated Report and Financial Statements show that in 2018, Mr Waigara earned a gross pay of KSh 272.9 Million.
A KCB Director’s remuneration report shows that Oigara earned KSh 68 Million as annual salary, KSh 179.9 Million as bonus, KSh 10 Million in allowances and KSh 14 Million as gratuity payments. He was also paid KSh 1 Million to cater for medical insurance, club membership and professional indemnity cover.
In the financial year ended December 2019, KCB Group’s net profit increased grew marginally to KSh 25.2 billion while its balance sheet size grew from KSh 714.3 billion to KSh 898.6 billion.
The Kenyan Government is the largest shareholder in KCB Group with 19.76% shareholding followed by the National Social Security Fund(NSSF) 7.12%. These two shareholders control the largest stake in the bank with other nominees controlling between 0.9% and 1%.
Oigara’s salary package, allowances and other benefits only rival those of Dr Gideon Muriuki considered the highest-paid bank CEO in Kenya.
According to 2019 financial statements of Co-operative Bank, Dr Muriuki earned an annual pay of KSh376.4 million, ahead of Oigara’s KSh 273, at the end of the 2018 financial year. Muriuki earned a monthly salary of KSh 31 Million per month during the 2018 financial year, putting him on top of the heap of CEOs of listed firms in Kenya.
Joshua Oigara serves as the Group Chief Executive Officer of KCB, the most profitable lender in Kenya, was appointed in November 2012 as CEO at the age of 37. He took the helm of the bank to replace Dr Martin Oduor-Otieno, making Oigara the youngest CEO of a listed firm at the NSE then.