There has been a lot of discussions online following news that the CEO of KCB Group Mr. Joshua Oigara earned a whopping 299.1 million shillings in salaries in 2019.
Some Kenyans are saying that the amount the CEO of the largest bank in terms of assents in Kenya earned was too high for “one man”. Others are saying, the man deserves to be paid as per his agreement with “his employer.”
The amount that Mr. Joshua Oigara earned (299.1 million shillings in 2019) was 95.1 times the average annual pay of his 6,202 permanent employees at Kenya Commercial Bank with Kenyans giving various opinions whether the payments were justified.
Joshua Oigara’s compensation increased by 26.2 million shillings (9.6 percent) in 2018 from 272.9 million shillings in 2018 to 299.1 million shillings in 2018. The increase in compensation as a result of an increase in his salary by 5.9 percent.
In 2019, Mr. Oigara earned a deferred compensation bonus of 48.4 million shillings and a gratuity of 21.6 million shillings. At 45 years old, his renewable 5-year-term is expected to come to an end in the year 2023.
At the rate, it means that Joshua Oigara, in 2018, was earning at least 24.9 million shillings per month, more than 95 times the annual salary of 6,202 permanent employees at the bank.
For the 2019 financial year, KCB Group registered a profit of 25.1 billion shillings from 23.9 billion shillings recorded in 2018. The bank says it often ties bonuses of their directors and CEOs on the performance of the bank in terms of profits.
In 2018, Oigara received 179.9 million shillings as a bonus from the bank. The bonus reduced to 145.3 million shillings in 2019. He is also entitled to medical insurance, club membership, and professional indemnity. The amount for the three provisions dropped to 300,000 shillings in 2019 from one million shillings in 2018.
In terms of salaries, Joshua Oigara earned more than President Uhuru Kenyatta in 2019. The Salaries and Remuneration Commission (SRC) fixed the salary of the president at 1,650,000 per month (without allowances). If President Uhuru Kenyatta still got the same salary in 2019, it means Oigara was earning 20 times than him.
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