This man Joshua Oigara: Why KCB pays him Sh 273M

KCB boss Joshua Oigara is arguably one of the highest paid CEOs in Kenya and by a big margin.

In the financial year 2018, Oigara was paid an incredible Sh. 273 million salary by Kenya’s largest bank. This included his basic salary, allowances and bonuses.

Joshua Oigara’s salary has placed him in the set of the best paid chief executive officers in the country.

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Mr Oigara’s 6.6 percent (Sh17 million) pay increase mainly came in the form of a higher bonus of Sh180 million that went up from Sh147 million in 2017, and which more than compensated for a Sh20 million drop in allowances to Sh10 million.

His higher bonus (and total pay package) was in tandem with KCB’s 21.8 percent growth in profit last year to Sh24 billion, the highest-ever earnings reported by a Kenyan bank.

KCB ties bonus payments to achievement of multiple metrics, including the profitability of the group.

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The bank’s employees are paid a bonus if they achieve 95 per cent or more on a scorecard of the set targets.

During the year, KCB paid Mr. Oigara as follows:

1). Salary : Sh. 68 million

2). Allowance: Sh. 10 million

3). Gratuity: Sh. 14 million

4). Bonus: Sh. 180 million

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In the financial year 2017, Joshua Oigara was paid Sh. 256 million.

The 2017 pay meant that Mr. Oigara earned nearly Sh. 1 million for each working day and was 72.1 times the average Sh. 3.5 million paid to KCB’s 5,393 permanent employees.

In setting this salary, KCB factored in the achievement of its key financial goals.

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For example, in the financial year under which the payment was made, the bank’s net profit jumped by 21.8 per cent to Sh. 24 billion from the Sh. 19.7 billion it recorded in the same period in 2017.

Its pretax profit rose 16 percent to Sh. 33.9 billion, helped by higher interest income and a drop in operating expenses.

Mr. Oigara who has been leading Kenya Commercial Bank – as the bank is officially known – since November 30 2012 said that he sees no need in extending his contract.

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‘’I have three years to the end of my 10-year contract. I have done what was supposed to be done. There is no need in overstaying,’’ Oigara said.

The 44- year old replaced Martin Oduor-Otieno seven years ago. During his reign so far, he has almost tripled the bank’s asset value from Sh. 297.5 billion in 2012 to Sh. 714.3 billion.

CEO Joshua Oigara, an MBA graduate from the Edith Cowan University (ECU) in Australia was said to be among top contenders for the KRA director general position but dismissed the reports as rumors.

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