ABC Bank was started in 1981, as a financial institution named Consolidated Finance Company Limited. It was born out of the vision of a group of experienced bankers, industrialists, and prominent advocates, who wanted to make a significant contribution in availing financial solutions specific to the unique business in Kenya.
At the time of its inception, the market lacked options for consumers in terms of personalized service and tailor-made solutions. Consolidated Finance Company Limited opened its doors on 13th of November 1984 to address this market need, with its registered office in Nairobi, Kenya. The growth of Consolidated Finance Company Limited was rapid yet steady over the first nine years and by 1994, Consolidated Finance Company Limited became one of the leading Financial Institutions in the country.
With this solid background and the continued reforms in banking regulations, Consolidated Finance Company had positioned itself to take advantage of these changes to offer more services and support to its customers. Thus, upon gazettement of legislation allowing financial institutions to convert into banks, Consolidated Finance Company immediately transformed, giving rise to African Banking Corporation Limited (ABC), which officially opened its doors in January, 1995.
ABC is fully committed to the principles of transparency, integrity and accountability. The Directors are ultimately accountable to all stakeholders for ensuring that the bank’s business is conducted in accordance with high standards of corporate governance. Of particular importance to the bank are the observance of shareholders’ interest, efficient practices and open corporate communication systems.
Corporate Governance Awards
The Bank has consistently demonstrated commitment to strong governance system, for which it has won awards in various categories since 2007.
|2016||Champions of Governance||2nd Runners Up||Finance and Investment Sector||Institute of Certified Public Secretaries of Kenya (ICPSK)|
|2014||Champions of Governance||1st Runners Up||Overall||ICPSK|
|2014||Champions of Governance||1st Runners Up||Finance and Investment Sector||ICPSK|
|2013||Champions of Governance||2nd Runners Up||Finance and Investment Sector||ICPSK|
The Champions of Governance (COG) Awards is an annual award program specifically for organizations and companies in an area that has not received specific attention. The COG is an exercise that objectively seeks to identify and publicly recognize organizations/companies that demonstrate excellence and integrity in their governance systems, leadership and management practices.The awards would not have been possible without successful and thorough due diligence by the awarding bodies, namely, Think Business and the Institute of Certified Public Secretaries of Kenya (ICPSK)
The assessment process involved having an interactive session with the Group Managing Director and the team of Managers of ABC Bank. The presentations focused on the performance in the ten governance parameters: Transparency and disclosure, Adherence to laws and Regulations, Annual General Meeting and other members’ meetings, service to members, communication and public education, Board independence and governance, Board systems and procedures, consistent shareholder and stakeholder value enhancement, and Leadership and Strategic Management (Strategy, Creativity and innovation, Human Resources, Finance and Commendations).
The assessment tool was administered and evidence requested (supporting documentation). Thereafter the ICPSK team of consultants complied and presented to the Bank a corporate governance report addressing the main areas of strength as well as areas recommended for improvement.
In a bid to further enhance transparency in the ownership structure of ABC Bank in line with the Central bank of Kenya Prudential Guideline on Corporate Governance Clause 3.14.4, we disclose companies and individuals with more than 5 per cent shareholding as: Queens Holdings Ltd (25.000 percent), Mr. Ashraf Savani (24.996 per cent), Cartridge Recharge Kenya Ltd (24.985 per cent) and Mr. Yasin Bhura (18.182 per cent).
The percentage of the number of individual shareholders is 66.67 and the percentage of corporate shareholders is 33.33. The percentage of the number of local shareholders is 83.33, and the percentage of the number of foreign shareholders is 16.67.
The Board of Directors comprises seven highly qualified professionals with diverse professional backgrounds ranging from banking, legal and financial advisory services.
The seven members:
- Mr. Richard Omwela- Independent Non-Executive Chairman
- Mr. Ashraf Savani- Non-Executive Director
- Mr. Joseph Muiruri- Independent Non-Executive Director
- Mr. Alban Mwendar- Independent Non-Executive Director
- Mr. Shamaz Savani- Executive Director
- Mr. Sridhar Natarajan- Executive Director
The Board is responsible for formulating the Bank’s policies and strategies and ensuring that business objectives, aimed at promoting and protecting shareholder value, are achieved. The Board also retains the overall responsibility for effective control of the Bank and implements its corporate governance policies.