NAIROBI – Abdi Mohamed has stepped down as chief executive officer of Absa Bank Kenya to join I&M Bank, marking a high-profile executive transition between two of the country’s prominent financial institutions.
The move comes as a surprise to the corporate sector, as Mohamed had served in the top role since 2023. Unlike other recent sudden departures in the Kenyan market-such as those of former Kenya Airways CEOs Allan Kilavuka and Sebastian Mikosz, who were nearing the end of their tenures-Mohamed’s exit was not pre-empted by term expirations.
This poaching of a sitting CEO by a rival lender reflects the aggressive competition for leadership talent within the East African banking sector, where institutions are increasingly prioritizing experienced executives to navigate shifting regulatory environments, including prudential standards issued by the Central Bank of Kenya, and rapid digital disruption.
Diversification of Revenue Streams
During his tenure, Mohamed managed the transition of the bank through the “post-Barclays era,” following the structural shift where Absa Group took full ownership of the entity and completed its rebrand from Barclays Bank Kenya. His strategic focus centered on reducing the bank’s reliance on traditional interest-based lending by expanding non-funded income sources, a priority closely watched by regulators and investors as a measure of resilience.
Key pillars of the bank’s strategy under his leadership included:
- Amplifying bancassurance operations to deepen fee-generating retail and corporate products.
- Driving growth in asset management and brokerage units to capture capital markets activity.
- Restarting the bank’s custody business to serve institutional investors and regional funds.
This pivot toward diversified financial services is part of a broader regional trend as banks seek to hedge against interest rate volatility and the tightening of credit requirements under evolving supervisory guidelines from the Central Bank of Kenya.
Corporate Trajectory and Succession
Mohamed’s departure concludes a 32-year career with the organization. He began his professional tenure in 1994 as a bank teller in Garissa for what was then Barclays Bank Kenya. His ascent to the C‑suite involved leadership roles across multiple regional markets, including:
- Zambia
- Tanzania
- The United Kingdom
Those postings exposed him to varied regulatory regimes and customer segments, experience that Absa later leveraged as it sought to align its Kenyan operations with group-wide standards and regional growth ambitions.
“When I look at the 32-year journey, everything I have done and learnt at Absa, and in different regional markets too, I felt the timing was right to go and do something new, something different. A new way of looking at things and getting a new angle in the industry. This has been a personal decision,”
Mohamed stated.
The transition follows the precedent set by his predecessor, Jeremy Awori, who moved from Absa Bank Kenya to lead Ecobank Transnational Incorporated in Lomé, underscoring the Nairobi-based lender’s role as a grooming ground for regional banking chiefs.
Governance and Institutional Stability
The sudden nature of the move has raised questions regarding corporate stability, particularly in a sector where executive appointments require vetting and approval by the Central Bank of Kenya and must align with board-level succession frameworks. Mohamed, however, maintains that the bank’s internal governance structures are equipped for such shifts. He noted that the institution’s longevity and established succession planning processes are designed to mitigate the impact of leadership changes on customers, employees and capital providers.
Mohamed described his professional philosophy using the analogy of a mountain climber, stating that the objective is to solve problems and assist customers while pursuing successive goals, rather than viewing the CEO position as a final summit.
Absa Bank Kenya is now activating its succession plan to fill the vacancy, adhering to the standard corporate flow that saw Mohamed himself enter the role through a similar process. The board is expected to work closely with regulators and shareholders to ensure a smooth handover and continuity of the bank’s multi-year strategy as Mohamed prepares to take up his new position at I&M Bank.