The Co-operative Bank of Kenya has hired McKinsey & Company to support it with the development of a growth strategy. The consultants have been given three months’ time to come up with a strategy, roadmap and action plan.
With a total asset-base of roughly $2.67 billion, Co-operative Bank of Kenya is the country's third-largest financial services provider, behind Kenya Commercial Bank and Barclays Bank Kenya. The Co-operative Bank operates mainly in the commercial banking segment, and manages just over 3.5 million retail and business accounts.
Over the past years, Co-operative Bank of Kenya has booked strong growth, quickly closing the gap with its two largest rivals. For the coming years the bank, which saw its H1 2014 profits rise from 4.71 billion Kenyan shillings in the previous year to 4.72 billion Kenyan shillings, has announced the ambition to further accelerate its growth. Several underlying initiatives have since been revealed, including market entry into the Ugandan market (a move which will boost its foothold in the East African region), investments into its banking infrastructure and the launch of mobile banking service, an offering which is key for winning customers in the African continent.
As part of realising its so-called ‘2015 to 2019 growth strategy’, the Co-op Bank has decided to bring in the expertise of external consultants. Following an internal evaluation of potential candidates the bank’s management choose for the services of McKinsey & Company, the world’s largest and arguably also the most prestigious strategy consultancy. The advisors have been given three months’ time to, based on the growth targets in place, come up with initiatives that will fuel the ambition, including the identification of growth initiatives but also topics aimed at boosting the company’s internal operations.
In a statement, the listed commercial bank says McKinsey’s findings are expected to enhance the bank's growth momentum, improve its organisational structure as well as enhancing operating models and operational efficiency. “The review will benchmark the bank with industry best practice locally and regional,” says Gideon Muriuki, CEO of Co-operative Bank.
McKinsey in Kenya
McKinsey’s project win in Kenya follows the opening of a local office in Kenya just a month ago, its seventh in Africa, a move which sparked interest in its services from high-profile players in the market. Over the past years the American-based consulting firm already worked for several blue chip companies in Kenya such as East African Breweries, Kenya Commercial Bank and Britam.