Mwangi named Old Mutual chief executive

Mr Peter Mwangi takes over from Rueben Java who has been reassigned to the life business at Old Mutual Zimbabwe. FILE

By HERBLING DAVID

In Summary
Former Nairobi Securities Exchange (NSE) boss to drive finance group’s business.
The financial services group Monday announced the hiring of Mr Mwangi effective October 1.
The appointment hands Mr Mwangi a smooth career landing, given that his second and final three-year term at the NSE was due to end on November 24.
Old Mutual Kenya has hired outgoing Nairobi Securities Exchange (NSE) boss Peter Mwangi as chief executive, adding to a growing list of market intermediaries that have tapped former CEOs of the bourse.

The Johannesburg Stock Exchange-listed financial services group Monday announced the hiring of Mr Mwangi effective October 1.

The appointment hands Mr Mwangi a smooth career landing, given that his second and final three-year term at the NSE was due to end on November 24.

"He is an experienced leader with a proven track record of steering companies to deliver market-led solutions for customers," said Tavaziva Madzinga, the chief operations officer of Old Mutual Africa.

"He has served across various East African companies at both director and board levels. We will look to benefit from this experience to grow our business across East Africa."

The move marks a career climb for Mr Mwangi who will be in charge of Old Mutual’s Sh30 billion assets under management, compared to the NSE’s assets worth Sh1.14 billion as at December 2013.

Mr Mwangi’s move to Old Mutual follows in the footstep of his predecessors who were similarly recruited to head financial services companies.

Nkoregamba Mwebesa, who served as NSE boss between 2004 and 2008, is currently managing director of SBG Securities, a brokerage arm of CfC Stanbic.

Kibuga Kariithii, who was NSE chief from 1999 to 2004, is a director at AIB Capital, which specialises in stock broking and corporate finance.
Job Kihumba who was NSE boss between 1991 and 1999 is currently an executive director at Standard Investment Bank.

Old Mutual recently concluded the acquisition of a 67 per cent controlling stake in Faulu Microfinance Bank valued at Sh3.6 billion.

The incoming CEO will now be tasked with integrating Faulu into the Old Mutual’s business model.

"We aim to leverage off Faulu’s existing customer and distribution network to sell our retail insurance products," said Old Mutual in its 2013 annual report.

Mr Mwangi will also be expected to grow Old Mutual’s mobile-based investment product dubbed i-INVEST. The mobile platform allows investors to register and manage a unit trust account using their mobile phones.

Old Mutual said it is banking on Mr Mwangi’s experience in the corporate sector to drive uptake of insurance and deepen banking services through small loans to small and micro enterprises.

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