Crown Paints hit by executive exits as CEO stripped of key roles

For two decades, Rakesho Rao has steered Crown Paints to become a manufacturing powerhouse, while he has carved himself some space as a corporate leader and easily fits the description of a captain of industry. 

His boat appears now to be rocking if recent developments at the firm are anything to go by. 

Crown Paints was in June hit by the exit of several senior managers, indicating some inner turmoil. At least six middle-level managers left the firm over a span of two weeks between May 31 and June 12, with sources citing differences within the leadership, including meddling by the firm’s board.

In what further points to tumultuous times for both the firm and Dr Rao, the long-serving chief executive officer, has lost some of his power at the firm.

Rao, who has been overseeing the operations in Kenya and the region, will now be in charge of Kenya while the group chief operations officer will be in charge of the other units in the region. 

The firm on May 31 announced, through an internal memo, the exit of three officials who held key roles in different departments.

The following week on June 3, Crown Paints announced the departure of another two managers and a week later on June 12, it said yet another manager would be leaving the firm. 

Those who left the firm over the period include George Okwach, who had been the group audit and risk manager and had been with the firm 15 years, Alice Okeyo, the customer care and experience manager and Pamela Lopokoiyit, senior marketing officer, who had worked with Crown for three years. 

Others are Emmy Chemutai, human resource manager-employee relations, Henry Amboko, the transport and maintenance manager and Jared Ochieng Ojwang, business development manager.

Responding to queries by Sunday Standard on the circumstances that left the exit of the employees from the company, Crown Paints in a statement appeared to say the large number of managers leaving at around the same time was a coincidence.

Each employee, the firm said, was left under unique circumstances and each case was handled separately. 

“Each employee’s exit was considered on its individual merits and processed in accordance with Crown Paints’ Human Resources policies and the Kenyan Employment Act,” said Crown.

The firm further explained that the different circumstances fell into different categories that included some employees leaving to pursue other opportunities, non-renewal of some expiring contracts, failure to meet targets and dismissal due to fraud. 

“Some employees resigned to pursue external career opportunities and a number completed fixed-term contracts that were not renewed,” said the company.

“After a structured appraisal cycle and performance-improvement plans, one employee was released for not meeting agreed targets.”

“After thorough internal investigation and disciplinary hearing some employees were dismissed for gross misconduct after being found to have committed fraud. The dismissal followed due process and the individual’s right of reply.” It added that no staff was forced out or made to resign.

“No employee was coerced to resign or forced out’. Every case was adjudicated on its own facts, guided by written policy, and subjected to internal review to ensure fairness and legal compliance,” said the statement. 

For years, Rao has steered the company, overseeing its growth from making Sh34.42 million in 2005 when he took over to a net profit of Sh544 million in 2024.

The firm has also grown market share, commanding more than 60 per cent of the market share in the premium paints category today from about 40 per cent in 2005.

Two decades ago, there were about 10 paint manufacturers but industry data shows these have grown to over 70. 

He has also seen the company bag major accolades including being named the Company of the Year severally. Over the last two decades, the firm expanded to the region, with a presence in Tanzania, Uganda and Rwanda.

Sources now say he is being sidelined at the firm, with some of his functions taken to the recently created office of group chief operations officer. 

“The Group CEO is managing Crown Paints Kenya while Crown Paints Tanzania and Crown Paints Rwanda have been taken away and moved to Richard Muturi, the Group COO,” said a source, adding that the CEO may not have had control on the exits of senior staff in June. 

Crown paints acknowledged a restructuring of sorts of the CEO’s office including the stripping of some roles from the CEO’s office. It explained that this was aimed at freeing up the CEO for work that would further grow the firm’s revenues and deepen its presence in the region.

It further said that Rao had not been sidelined in key decision-making processes of the company, including the decision arriving at the exit of the six senior officers.

“Dr Rakesh Rao remains fully engaged in all strategic and material operational decisions as Group CEO and managing director. In line with global best practice, Crown Paints created the role of chief operations officer to streamline day-to-day management. 

“This structure frees the CEO to concentrate on revenue growth, regional expansion, investor relations and innovation. (It also) enhances corporate governance through clear segregation of duties.”

Contrary to reports that the board had a hand in the decisions leading to the exit of the senior officers, Crown said that its board “fulfils an oversight and policy-setting mandate. It does not micromanage operational personnel matters”.