In the speedily progressing global economy, the role of a trusted financial partner has become crucial. These partners offer tailored solutions that address the unique goals of individuals and businesses, encompassing both basic banking and investment services.
They provide access to wide-ranging financial solutions and guide customers as they navigate financial complexities, grow their wealth and enhance their financial resilience. I&M Group PLC Regional CEO Kihara Maina oversees the East African Banking Group’s operations across Kenya, Mauritius, Tanzania, Rwanda and Uganda.
He drives the Group’s corporate strategy with a focus on sustainability, technological innovation and culture change in the provision of relevant products and services to different customer segments.
Let us learn more about his journey:
A Distinguished Career in Banking
Kihara is a seasoned banker with 30 years of experience in the financial sector. He held various Treasury roles before serving as Managing Director of Barclays Tanzania for seven years. In 2016, he became CEO of I&M Bank Kenya, where he successfully implemented the iMara strategy, elevating the bank to Tier 1 status. In January 2023, he was appointed Regional CEO of I&M Group PLC.
Maina serves on the boards of I&M Group PLC, I&M Bank Rwanda PLC, I&M Bank Uganda, I&M Bank Tanzania, Bank One Limited, and The East African Bond Exchange (EABX). He is also a Trustee of the Alliance High School Endowment Fund Trust.
Outside of work, he is a devoted husband and father of two, as well as a golf enthusiast. His banking career began at Moi University, where his mathematics degree and interest in computer science led him to a Management Trainee Programme, launching his successful career.
Overview of I&M Group PLC
I&M Group PLC has a strong presence in the Kenyan market, providing banking, insurance, and real estate services. It offers a range of financial services, including Corporate & Institutional Banking, Personal & Business Banking, Bancassurance, Wealth Management, and Advisory services across five countries: Kenya, Uganda, Tanzania, Rwanda, and Mauritius.
Founded in 1974, I&M Bank evolved from a financial services company into a commercial bank and is now a wholly owned subsidiary of I&M Group PLC, which is listed on the Nairobi Securities Exchange (NSE).
The Group is regulated by the Central Bank of Kenya, the Capital Markets Authority of Kenya, and the Nairobi Securities Exchange. Its Rwandan subsidiary, I&M Bank Rwanda PLC, is also listed on the Rwanda Stock Exchange, enhancing the Group’s regional presence.
A Case Study on Kihara’s Vision
Under Kihara’s leadership, I&M Group PLC. has pursued a transformative strategy dubbed iMara (Swahili for strong). The iMara Strategy was designed to be delivered across three horizons in three-year cycles. The initial phase established a strong foundation, focusing on re-platforming and digital enhancements, likewise refining the Group Operating Model. These efforts achieved Tier 1 status in Kenya, increased market share in Tanzania and Rwanda, and contributed 89% of profit before tax from I&M Bank Kenya while elevating the organization’s Health Index ranking.
In 2020, the Group pivoted towards diversification, emphasizing value proposition boosts, increasing share of wallet, and adapting digital strategies to meet changing customer needs. Currently, the focus is on solidifying leadership in priority segments and expanding into emerging markets. In the primary market of Kenya for example, the banking entity I&M Bank Limited has launched award-winning propositions for MSMEs, strengthened fintech partnerships, and embarked on an ambitious branch expansion strategy with 20 new branches set to open by the close of 2024.
Increasing Finance and Operations
Under his headship, I&M Bank Ltd. has confirmed significant Trade Finance and Treasury limits with top international counterparties for Letter of Credit (LC) confirmations and Money Market activities. When its subsidiary banks face capital constraints, I&M Bank Kenya’s strong balance sheet supports them through re-issuance, ensuring continued Trade Finance operations.
The bank has forged lasting partnerships with global banks, including JP Morgan, CitiGroup, CommerzBank, Standard Chartered Plc, and the International Finance Corporation (IFC), expanding its international trade network. As an issuing bank under the Global Trade Finance Program (GTFP), I&M Bank Ltd. enhances its ability to provide trade financing, with IFC guarantees mitigating payment risks for various trade transactions.
To facilitate payments and Treasury operations, I&M Bank Ltd. leverages a network of top global banks, ensuring access to major financial markets for real-time operations. Additionally, though I&M Capital Limited and Bank One Mauritius, the Group offers customers access to international investment markets and diversified wealth management solutions.
Innovative Financial Solutions
Kihara of I&M Bank Ltd. underlines the bank’s dedication to unique financial solutions in Kenya and beyond. Notably, I&M Bank is the only institution in Kenya offering free Bank to Mobile Wallet transactions, providing substantial daily savings for customers, with a recent extension of the offering to the Tanzanian market.
The bank also features the largest unsecured personal loan offering in Kenya and has received positive feedback for its digital lending products. In 2013, I&M Bank was the first Bank in the region to introduce the Mastercard Multicurrency Prepaid Card, aiding travelers to hold GBP, EUR, and USD, thus avoiding currency conversion fees.
In 2017, Kihara launched the first German Desk in Africa for tailored financing services for German SMEs in Kenya, a Chinese Desk to address the growing Chinese trade corridor would soon follow. I&M Bank is also unique in issuing Letters of Credit (LCs) with two-year terms, reinforcing its leadership in innovative banking solutions.
An Overview of the Group’s Risk & Compliance Strategy
I&M has determined a comprehensive Group Minimum Standards Compliance Framework that aligns with global regulatory standards. The bank maintains regular engagement with regional regulators to safeguard transparency and adherence to compliance requirements.
Robust internal audits are conducted alongside the utilization of advanced compliance technology for effective monitoring and reporting. Ongoing training programs for staff further develop the bank’s compliance culture.
Additionally, third-party audits are carried out to verify adherence to regulations, confirming that I&M Bank Ltd. operates consistently in line with both international and local regulations across all jurisdictions.
Strengthening Resilience
Kihara has been instrumental in strengthening the Group’s ESG risk management position, thereby facilitating the company’s resilience and sustainable growth.
Initiatives include providing comprehensive compliance guidelines and ongoing support for all facilities utilized by The Group and making sure that sustainable practices are integrated into their operations.
Enhancing Digital Banking
In 2019 as CEO of I&M Bank Kenya, Kihara oversaw the formalisation of the Bank’s digital innovation hub iCube focused on customer-centric and future-ready digital banking solutions. iCube has developed initiatives to improve customer experience, such as hasty digital account opening and machine learning applications for advanced data analytics and predictive modeling, enabling personalized banking solutions.
To successfully flight iCube, Kihara prioritised building an agile workforce by recruiting a diverse team and embarking on a culture transformation programme that would facilitate a paradigm shift internally to drive the push for innovation.
In 2021, I&M Bank partnered with Backbase to launch I&M On the Go (OTG), a disruptive omnichannel banking platform. This solution allows individual and business customers to access banking services in real time across various channels, making I&M the first bank in the region to adopt this technology.
With over 2 million monthly transactions on OTG in Kenya alone, the Group is leading the charge in catalysing the digital banking landscape, shaping the future of the digital economy. As of June 2024, 82% of I&M Bank Ltd.’s customers were digitally active, marking a 4% increase from the previous year and demonstrating that digitization is key to the bank’s brand relevance and customer growth.
The bank has introduced innovative digital financial solutions like the award-nominated ‘Ni Sare Kabisa’ for free bank-to-mobile wallet transfers and the country’s largest unsecured personal loan product. With approximately 77.3 million registered mobile money accounts in Kenya by December 2023, the reach of Ni Sare Kabisa is significant.
I&M Bank has also enhanced its digital loan offerings, providing short-term loans, salary advances, overdrafts, and long-term loans. Self-service options now allow customers to open accounts, apply for loans, and then manage payments online.
Data analytics from digital channels continues to inform product development, enabling I&M Bank to offer personalized banking services and proactive customer support.
Strategic Treasury Management
I&M Group PLC sees to it that when its subsidiaries borrow Foreign Currency (FCY) for on-lending to customers. The bank sees to it that when its subsidiaries borrow FCY for on-lending, the beneficiaries generate revenue in the same currency, effectively minimizing exposure to foreign exchange (FX) risk. Over the years, I&M Group PLC. has successfully secured FCY facilities from esteemed institutions such as Proparco, DEG, FMO, IFC, Responsibility AG, and the European Investment Bank, all of which have been fully paid.
I&M Group PLC Welcomes New Shareholder to Drive Growth & MSME Lending
In 2024 I&M Group PLC welcomed East African Growth Holdings (EAGH) as a shareholder. The group recognizes EAGH’s commitment to Sub-Saharan Africa as a source of confidence in maintaining its momentum and advancing financial inclusion within its operational markets.
This development aligns with I&M Group PLC’s strategic goal of becoming the leading financial partner for growth in the region. With this development, the bank anticipates receiving enhanced technical and financial support to further build on the progress achieved under their predecessor.
Leading the Pack in Information Security
In August 2024, I&M Group PLC’s subsidiaries— I&M Bank Kenya, I&M Bank Rwanda PLC, and I&M Bank Tanzania Limited—became the first in East Africa to achieve the ISO/IEC 27001:2022 certification for Information Security Management Systems (ISMS). This certification, awarded by the British Standards Institution (BSI), highpoints the group’s dedication to top-tier information security.
The Group prioritizes the protection of customer data and intellectual property, implementing measures like multi-factor authentication and real-time fraud detection. I&M Bank Kenya excelled in Physical Security and Business Continuity Management, while I&M Bank Tanzania scored highly in Information & Cyber Security.
I&M Bank Rwanda achieved top scores in Data Centre management, Procurement and Human Resources. Additionally, I&M Bank Uganda has begun its certification audit process, reinforcing the group’s dedication to safeguarding customer privacy and operational integrity.
A Legacy of Customer Service Excellence
In its 50-year history, I&M Group PLC has employed a variety of assessment tools to safeguard optimal customer satisfaction and operational success. The bank closely monitors transaction success rates through real-time dashboards, utilizes media monitoring tools to gauge online sentiment, and gathers feedback from its customer service centers.
Also, a robust Relationship Management reporting structure is in place, complemented by regular stakeholder engagement events for both internal and external customers. The Group also conducts surveys to measure its Net Promoter Score (NPS) and Customer Satisfaction Score, which currently stand at an impressive 75% and 95%, respectively, significantly exceeding industry standards.