The government has reconstituted the board of Consolidated Bank of Kenya Ltd (CBKL) as part of ongoing plans to privatise the struggling State-owned lender.
The bank has been facing challenges including declining deposits, a shrinking loan book, high impairment charges, and inadequate capital levels.
President William Ruto revoked the appointment of the bank’s chairperson, Charles Njagagua, before the expiry of his three-year term. Njagagua, a former Mbeere North MP, had been expected to serve until February 2026, but no replacement chair has been announced.
Treasury Cabinet Secretary John Mbadi also revoked the appointments of board members Kenneth Gatheru, Harun Kipkemei, and Jedidah Mwiti. Gatheru, a former Mukurwe-ini Central MCA, had served for two years, while Kipkemei had been on the board for less than a year, having joined in November 2024.
In their place, Prof. Kennedy Ntabo Otiso, Edward Kiplimo Bittok, and George Mokua have been appointed as new board members for a three-year term, effective October 3, 2025.
“The Cabinet Secretary for the National Treasury appoints—Kennedy Ntabo Otiso (Prof), Edward Kiplimo Bittok and George Mokua, to be members of the Board of Directors of the Consolidated Bank of Kenya Limited, for a period of three (3) years, with effect from October 3, 2025,” reads the gazette notice.
Prof. Otiso previously served on the board for five years until 2023, while Mokua had been a director for 18 months until his appointment was revoked in December 2023.
The board shake-up comes shortly after the bank reported a profit for the first time in over ten years, largely attributed to cost-cutting efforts. For the six months ended June 2025, Consolidated Bank posted a profit after tax of Sh12 million, reversing a loss of Sh84 million in the same period last year. The bank had consistently reported losses since March 2016.
Despite the modest turnaround, the bank remains financially constrained. The government plans to inject Sh3.7 billion into Consolidated Bank within the next two and a half months to meet the Central Bank of Kenya’s new minimum core capital requirement of Sh3 billion, set to take effect at the end of this year.
The lender’s capital position remains weak, with accumulated losses amounting to Sh4.4 billion and core capital standing at negative Sh731 million. Its core capital-to-total deposit liabilities ratio is currently at negative 5.8 percent, well below the mandatory minimum of eight percent.
Consolidated Bank and the Development Bank of Kenya are among the State-owned lenders earmarked for privatisation as the government seeks to reduce dependence on the Exchequer and redirect proceeds from the sales to development projects.