Abdi Mohamed takes over as I&M Bank Kenya CEO After Exiting the Troubled ABSA Bank

NAIROBI, Oct 5 – Abdi Mohamed took up his role as Chief Executive Officer of I&M Bank Limited, Kenya, today, following all regulatory approvals, I&M Group PLC has announced.

Mohamed resigned as Absa Bank Kenya CEO on 29 June, the same day I&M named him to the job. He started his career at Barclays in 1994 as a teller in Garissa. Over 32 years he rose through the Barclays/Absa network, including Absa Bank Tanzania, and returned to lead Absa Kenya in May 2023.

He leaves Absa with H1 profit down 9.8% to Sh10.53 billion as falling interest rates squeezed income. The lender still posted a 21.7% return on equity and raised its interim dividend 150%. Chief Financial Officer Yusuf Omari is the interim CEO.

At I&M, Mohamed inherits strong group numbers. I&M Group's H1 profit after tax rose 22% to Sh10.2 billion and total assets grew 27% to Sh746 billion.

The Kenyan unit is the weak spot. I&M Bank Kenya contributes 67% of group pre-tax profit, but that profit was flat at Sh8.3 billion as higher provisions offset revenue growth.

Regional units supplied the growth. Rwanda's pre-tax profit jumped 53% to Sh2.4 billion and Uganda's rose 225% to Sh700 million.

Together, non-Kenyan units now make up 33% of group pre-tax profit, up from 25% a year earlier.

Mohamed also leaves behind unresolved allegations over client confidentiality at Absa. Transporter New Mega Africa Ltd is suing the bank for Sh1.5 billion at the High Court in Mombasa.

It alleges the bank disclosed its confidential financial information to third parties. Absa denies the claim and says internal investigations found no wrongdoing. The case is still being heard.

Busia Senator Okiya Omtatah has since asked the Central Bank of Kenya and the DCI to investigate alleged client-confidentiality breaches and other misconduct by Absa staff.

I&M Group Executive Director Sarit Raja-Shah has said the board is confident Mohamed can lead the bank into its "next phase of growth."