It is confirmed, Housing Finance Bank Managing Director, Mathias Katamba has resigned his job and is headed to dfcu Bank to replace Juma Kisaame whose 10 year’s career at dfcu Bank is coming to an end.
Katamba will be replaced by Michael Karokora Mugabi the former Executive Director at Housing Finance Bank in acting capacity, according to a press statement and internal memo by the bank’s Board Chairman, Mr. David Opio Okello.
Last week, we wrote about the planned moves in the industry, basing on deep insider sources at the two banks, but both Juma Kisaame and Mathias Katamba refused to comment when approached. Neither did Jimmy Mugerwa and Elly Karuhanga, the respective board Chairmen of dfcu Bank and dfcu Limited.
Sources close to both Housing Finance Bank and dfcu told this website that “it is true Mathias will be heading to dfcu Bank and it will be announced soon.”
Katamba’s appointment is an egg in the face of William Sekabembe, dfcu Bank’s Chief of Business & Executive Director who is said to have been “next in queue” to replace Juma Kisaame.
Sekabembe who early this September rejected a Managing Director job at KCB Bank Uganda is said to have been promised to replace Juma Kisaame, “sooner than later” and was even offered a 47% salary increment to stop him from crossing to rival KCB Bank.
According to our sources, Sekabembe, the dfcu Chief of Business & Executive Director, effective this September 2018, had his basic salary increased from Shs38,035,800 in August 2018 to Shs56,000,000.
It is not yet clear whether Katamba will take up Juma Kisaame job immediately or whether Juma Kisaame will stay on till December, his expected departure date. Some sources have however intimated that Kisaame exit is being accelerated to before December.
According to the source, Kisaame’s accelerated exit is due to the controversial acquisition of a Crane Bank- a deal that although financially lucrative, has dented the reputation of dfcu Bank and especially that of its shareholders- CDC Group PLC and Arise B.V.
Arise B.V, which owns 58.7% of dfcu is itself is owned by RaboBank (25%), Norfund (48%) and Dutch Development Bank- FMO (27%).
This site first broke news of Sekabembe’s exit to KCB Bank in July, but at the time, dfcu Bank vehemently denied it.
According to dfcu sources, Sekabembe was “literally begged” to stay on at dfcu, because at the time Sekabembe resigned, dfcu was in the middle of a reputation crisis, emanating from the controversial takeover of Crane Bank as well as the just announced exit of one of their major shareholders, CDC Group Plc and therefore could not afford a resignation of its No.2 man. That would have sparked of a market scare and a possible run on the bank.
We wrote last week, that although Sekabembe took advantage of the situation at the time to negotiate for himself a huge salary rise, he had literally “shot himself in the foot”, as the board was furious and felt betrayed and was now looking for another potential Managing Director, other than Sekabembe.
According to our sources, the board felt Sekabembe, who all along knew he was being prepped for the top job, chose to leave dfcu at a vulnerable time when “they needed him most.” The board also felt that Sekabembe sort of arm-twisted them into negotiating a hefty package for himself.
Sekabembe has not only missed the top position at dfcu Bank, but he has also missed the hefty monthly Shs108,437,133.
It however unclear if this is what Katamba will be earning.
Who is Katamba and Mugabi?
Mugabi, Katamba’s replacement is said to hold “a wealth of banking experience” according to Housing Finance Bank’s website. He is a lawyer by profession, specializing in commercial and corporate law.
He holds a Masters of Law (Commercial and Corporate) from the University of London. He is also an Institute of Chartered Secretaries and Administrators (ICSA, UK) fellow.
He is an advocate of the High court of Uganda and other courts of judicature.
Katamba’s equally flourishing 18-year banking career, spans various roles at Orient Bank, Post Bank, Barclays Bank, Pride Micro Finance , Finance Trust Bank and Housing Finance Bank where he grown the bank’s assets by 23% from Shs597bn in 2014 when he joined to Shs733bn in 2017.
He holds an MSc (Financial Management) degree from the University of East London with additional qualifications from Harvard University’s John F. Kennedy School of Government and the University of Pennyslavia’s The Wharton School.