The Kenya Bankers Association (KBA) elected Paul Russo, CEO of KCB Group, as its new chairperson during its Annual General Meeting on Friday.
Russo succeeds John Gachora, Managing Director of NCBA Group, who has served as chairperson since June 2021.
Betty Korir, CEO of Credit Bank, was re-elected as vice chairperson, ensuring leadership continuity within the KBA.
This leadership transition occurs amid heightened regulatory scrutiny from the Central Bank of Kenya (CBK). The CBK has proposed a Risk-Based Credit Pricing Model, which would tie lending rates to the Central Bank Rate (CBR) plus a fixed premium, referred to as “K.” The CBK argues this model would enhance transparency in loan pricing and improve monetary policy transmission.
The KBA, however, opposes the proposal, warning it could limit credit access, particularly for small businesses and micro-enterprises, similar to the adverse effects of the 2016–2019 interest rate caps. The association advocates for the interbank rate as a more flexible, market-driven benchmark, stating that the CBK’s model “effectively amounts to interest rate capping” and “would restrict credit access, particularly for small businesses, low-income households, and micro-enterprises.”
With the CBK threatening penalties for non-compliance and lending rate disparities already evident across banks, Russo faces the critical task of unifying the sector’s response and leading negotiations with the regulator.
Paul Russo: Banking Strategist and Industry Reformer
Paul Russo, who became CEO of KCB Group in 2022, brings nearly 25 years of experience in strategic and executive roles at institutions such as Barclays (now Absa), PwC, and the National Bank of Kenya.
Recognized for integrating operational discipline with a focus on environmental, social, and governance (ESG) principles, Russo has received national honors, including the Elder of the Order of the Burning Spear (EBS), and serves on the United Nations Environment Programme Finance Initiative Leadership Council.
Following his election, Russo stated, “It is an honour to serve the industry in this capacity. I thank my peers for their confidence and reaffirm my commitment to working with all stakeholders to strengthen our industry’s contribution to national development. I am keen to deepen the ongoing transformation of the sector to better serve our customers, deliver affordable and accessible financial services, and effectively support the country’s economic ambitions.”
He also acknowledged his predecessor, saying, “I extend my sincere gratitude to my predecessor, John Gachora, for his commendable leadership during one of the most challenging periods for the banking sector. His steady hand ensured the industry remained resilient and responsive in times of uncertainty.”
Betty Korir: Advancing Financial Inclusion
Betty Korir’s re-election as vice chairperson underscores the KBA’s commitment to inclusive banking and financing for small and medium-sized enterprises (SMEs).
As CEO of Credit Bank, Korir has championed improved credit access for underserved markets, particularly women-led businesses and small enterprises.
Her continued leadership is expected to strengthen initiatives focused on responsible banking and customer protection.
Context of the Leadership Transition
John Gachora’s tenure as chairperson was marked by significant achievements, including guiding the banking sector through post-COVID-19 recovery by restructuring loans worth KSh 1.7 trillion by the end of 2021, addressing foreign exchange pressures through the Kenya Foreign Exchange Code, and boosting annual lending to micro, small, and medium enterprises (MSMEs) by KSh 150 billion.
Gachora also advanced sustainability initiatives and inclusivity through the Persons with Disabilities Accessibility Project.
As the banking sector navigates regulatory pressures and strives to expand credit access while supporting Kenya’s economic growth, Russo’s leadership will be pivotal in advocating for market-aligned reforms and addressing these challenges effectively.
