Co-op CEO Muriuki tightens grip on the bank with more shares

Co-op Bank Group CEO Gideon Muriuki during the bank's AGM in 2023. [File, Standard]

Gideon Muriuki, the chief executive of Kenya's Cooperative (Coop) Bank, has increased his stake in the tier-one lender, tightening his control over the bank, according to regulatory filings.

Muriuki's shareholding in Coop Bank has risen to 2 per cent from 1.75 per cent previously, the filings showed.

Muriuki is the second largest shareholder in the bank with 117.5 million shares after Co-op Holdings Cooperative Society Limited which has a 64.56 per cent stake in the lender. He is the largest individual shareholder at the lender.

The increase solidifies Muriuki's position as a major shareholder in the bank he has led as CEO since 2008.

Co-op Bank is one of Kenya's largest financial institutions, with a strong presence in the cooperative and agricultural sectors.

Muriuki's expanded ownership comes as banks navigate a challenging economic environment marked by rising inflation and pressure on lending margins.

Analysts and shareholders said the move by the CEO demonstrates his long-term commitment to Coop Bank and confidence in the institution's growth prospects.

However, some industry observers have raised concerns about the concentration of ownership and control at the top of Co-op Bank.

While Muriuki's increased stake is within regulatory limits, it does raise questions about succession planning and the bank's long-term governance, said one shareholder.

Muriuki first became a shareholder in Co-op Bank in 2012, acquiring a 1 per cent stake.

His holding has gradually increased over the years, reflecting his influence over the bank's strategic direction.

Under Muriuki's leadership, Coop Bank has diversified beyond its traditional cooperative client base, expanding into retail and corporate banking. The lender has also played a significant role in the Kenyan government's financial inclusion initiatives.

Coop Bank's board and major shareholders will closely watch Muriuki's next moves as the bank seeks to maintain its position in Kenya's competitive banking sector, the analysts said.