Co-op bank Kenya brings McKinsey on board to steer growth plan

by Elayne Wangalwa 0

In a statement, the listed commercial bank says the three month engagement will see it emerge as a more efficient player in the industry.

“The review will benchmark the bank with industry best practice locally and regional,” managing director, Gideon Muriuki said in a statement.

The lender with a presence in turbulent South Sudan recently announced it was seeking to enter Uganda. This is expected to put it at par with local competitors such as Kenya Commercial Bank (KCB) Group and Equity Bank that have a foothold across the East African region.

Recommendations by the New York-based consultancy firm are anticipated to play a pivotal role in the lender’s five-year strategic plan. The bank’s next growth phase will be from 2015 to 2019.

Recently, the lender which is Kenya’s third largest by market share launched a mobile banking service, permitting customers to conduct all their banking through their mobile phones. This service will see the bank compete against existing mobile banking service M-Shwari by Kenya’s largest telecommunication provider, Safaricom and the Commercial Bank of Africa.

The bank’s profits rose to 4.72 billion Kenyan shillings in the first half of the year from 4.71 billion Kenyan shillings in the previous year.

McKinsey’s findings are expected to enhance the bank’s growth momentum, improve their organisational structure as well as enhance operating models and operational efficiency.

McKinsey has restructured several blue chip companies such as East African Breweries, Kenya Commercial Bank and financial services group, Britam.

In August, Kenya became McKinsey’s seventh African hub. The global consulting firm attributed the new offices to increased business in East Africa’s largest economy as well as neighbouring countries.