Top bank chiefs reap millions in pay and perks on bumper profits

While much of corporate Kenya struggled through a year of stubborn inflation, muted consumer demand, and geopolitical aftershocks, a handful of banking chiefs turned crisis into opportunity.

 They delivered record profits, double‑digit shareholder returns, and a level of performance that left many analysts shaking their heads in admiration.

Now, their boards have responded in the only language that truly matters in the executive suite: heavy pay rises, massive bonuses and perks that go well beyond the ordinary pay slip.

 Annual reports filed by Kenya’s largest bank by assets, KCB Group; Kenya’s largest lender by customers, Equity Group; and tier one lender Absa Bank Kenya – released ahead of their annual general meetings later this month – show that each chief executive received a substantial increase in total pay after steering their institutions through an economy that broke many other companies.

 Only Standard Chartered Kenya, where profit tumbled, reduced its CEO’s compensation, underscoring that the pay‑for‑performance principle cuts both ways.

 “These CEOs are not just managers; they are rare talents who navigated a perfect storm – high borrowing costs, a liquidity squeeze, and a deeply uncertain political environment – and still came out ahead,” said a senior banking executive who spoke anonymously to speak freely.

 “Boards are afraid of losing them, so they pull out all the stops.”

 KCB Group CEO Paul Russo topped the pay league, earning a total of Sh285.3 million in 2025 – a 14 per cent jump from the previous year.

 His basic salary alone came to Sh85.9 million, which translates into roughly Sh7.2 million per month.

 The rest of his package included a cash bonus of Sh118.6 million, deferred awards of Sh39.5 million, allowances of Sh10.8 million, gratuity of Sh25.8 million, and non-cash perks – medical cover, club membership, and professional indemnity worth Sh4.7 million.

 The reward followed a year in which KCB’s net profit rose 11 per cent to an all-time high of Sh68.4 billion, total assets expanded nine per cent, and the bank’s share price surged 58 per cent, making it one of the best-performing counters on the Nairobi Securities Exchange (NSE).

 The board also proposed a record total dividend of Sh22.5 billion, a 133 per cent increase from 2024.

 Equity’s James Mwangi came in second at Sh275 million, with a monthly salary of Sh10.4 million

 The lender’s long‑serving chief saw the steepest percentage rise among his peers. His total remuneration jumped a remarkable 66 per cent to Sh275.7 million – up from Sh166.3 million in 2024.

 Mwangi’s annual salary stood at Sh124.9 million, giving him a monthly salary of approximately Sh10.4 million.

 The full package included a bonus of Sh90.8 million, gratuity of Sh37.5 million, expense allowances of Sh10.8 million, leave pay of Sh7.1 million, and non-cash benefits valued at Sh4.7 million.

 The pay surge came as Equity delivered a 52 per cent rise in profit before tax to Sh92.1 billion, with return on average equity accelerating to 26.7 per cent from 21.5 per cent.

 Under Mwangi’s leadership, the bank’s Africa Recovery and Resilience Plan has continued to bear fruit, while its insurance and technology subsidiaries began contributing meaningfully to the bottom line.

 Absa Bank Kenya’s Managing Director and CEO Abdi Mohamed earned Sh120.1 million in 2025, a 9.4 per cent increase from the previous year. His basic salary was Sh53.4 million, which works out to about Sh4.45 million per month.

 Mohamed’s package also included retirement benefits of Sh5.3 million, other employee benefits (covering housing, transport and medical allowances) of Sh22.9 million, a cash bonus of Sh22.9 million, and a deferred bonus of Sh15.6 million.

 The increase reflected a year in which Absa’s profit after tax rose 10 per cent to Sh22.9 billion, despite a challenging environment of falling interest rates that compressed net interest margins.

 The bank also made significant strides in digital transformation, launching a new AI‑powered CRM platform and achieving 94 per cent digital transaction penetration.

 The only CEO among the four whose total pay declined was Standard Chartered Kenya’s Kariuki Ngari.

 He earned Sh141.2 million in 2025, a 19 per cent drop from Sh174.4 million in 2024. His annual salary was Sh54.7 million, or about Sh4.56 million per month.

 The reduction mirrored a 40 per cent fall in the bank’s profit before tax, driven by a one‑off Sh2.6 billion pension charge and wide margin compression.

 Ngari will retire in April 2026 after 24 years of service, with the board already naming Birju Sanghrajka as his successor, pending regulatory approval.

 Across all three banks that awarded raises, non‑cash benefits formed a consistent part of the CEOs’ total reward.

 Common perks included comprehensive medical insurance (often covering immediate family), club membership fees, professional indemnity insurance, and car and fuel allowances – and in some cases, housing benefits.

 For KCB’s Russo, non-cash benefits were valued at Sh4.7 million; for Equity’s Mwangi, a similar amount was disclosed as “non-cash benefits”. Absa’s “other employee benefits” – which include housing, transport and medical allowances – came to Sh22.9 million.

 While many Kenyan companies outside the banking sector reported losses or stagnant growth – hammered by supply chain disruptions, higher utility costs and subdued consumer demand – the banking industry stood out as a pocket of resilience.

 Banks benefited from a stable exchange rate in the second half of the year, declining interest rates that revived private-sector credit, and a government that began settling pending bills.

 But executives and analysts agree that leadership made the difference. “You can have a great strategy on paper, but without a CEO who can execute it under relentless pressure, it remains just that – a piece of paper,” said a senior banker who spoke on condition of anonymity.

 “What we’re seeing in these pay packages is a market signal: great banking talent in Kenya is scarce, and boards are prepared to pay heavily to keep it.”

 All four banks will present their annual reports for shareholder approval at AGMs scheduled for later this month. For investors, the message is clear: when CEOs deliver huge returns in a tough economy, the boardroom chequebook opens wide – and the monthly salary figures show just how much these rare talents are valued.