UAP picks insider as chief executive Peter Mwangi resigns

UAP Old Mutual’s chief executive officer Peter Mwangi will step down next week, the company said on Friday, and will be replaced by chief financial officer Arthur Oginga.

The firm’s chairman Joe Wanjui said the outgoing chief executive, appointed to the job in October 2014, will leave the firm to pursue other interests.

“Mr Mwangi, who has led the East African business for five years, will be succeeded from April 15, 2020 by Arthur Oginga who currently serves as the Chief Operating Officer for Old Mutual Africa and over the last two years has been the Acting Chief Financial Officer for UAP Old Mutual based in Nairobi,” said the company in a statement.

Mr Wanjui said Mr Mwangi is credited with the integration of the UAP Old Mutual Group, including Faulu Microfinance Bank.

He said the new CEO is expected to steer the company to stability.

“Mr Oginga is not only familiar with the East Africa business, but is also highly experienced and able to take the helm and enable a seamless transition,” he said.

“He will also provide the necessary stability during these turbulent times globally, to steer the business to the next level without any undue internal disruptions.”

Before joining UAP as CEO, Mr Mwangi was the chief executive of the Nairobi Securities Exchange (#ticker:NSE) for a period of six years between 2008 and 2014.

The former Kenya Air Force officer was previously the managing director of Centum Investment Company #ticker:CTUM.

UAP Holdings last November issued a profit warning citing depressed property prices and a tough environment in South Sudan, signalling the second consecutive year in loss territory. Last year it also sought a loan to pay off its Sh2 billion corporate bond that was due for redemption in July.

The insurer issued the bond in July 2014 at an annual fixed interest rate of 13 percent to finance its expansion and working capital requirements.

The board said the performance for the financial year ending December 2019 will drop by at least 25 percent. Last year UAP investors experienced a dividend drought after the insurer posted a Sh518 m, its first in over a decade.

With the 2019 profit warning, they look set to miss out on the payouts yet again.

The company in 2018 cut staff headcount by 89 at a cost of Sh342 million and booked property valuation writedowns of Sh604 million due to reduced rent prices. In addition, it wrote off Sh300 million corporate bond in ARM and a further Sh100 million it held as deposits in Tanzania’s Bank M.

The past few years have been tough for insurance and investment firms due to low valuations of equities investments at the Nairobi Securities Exchange, while the property market has also seen lower growth hurting the returns and portfolio values for companies with an exposure to the sector.