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Legendary Corner: Who's Greater, James Mwangi or Michael Joseph?
youcan'tstopusnow
#1 Posted : Friday, April 02, 2010 9:35:52 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Yes, yes! I can already hear you all scrambling for your keyboards (or keypads) in a rush to jot down some replies.
These 2 are definitely two of Kenya's best chief executives. But who is greater?
James Mwangi joined Equity when it was still a building society and has transformed it into the biggest bank in Kenya by numbers with over half the total numbers of the banked population. Few can argue against him being called a Revolutionary. He changed the local banking scene. While Barclays and other big banks were closing branches in rural areas, he was opening them in the same places and offering loans to farmers for as little as 500 bob (incredible!). He eliminated minimal balances in accounts and operating fees. According to last years financial results, Equity is fourth in the banking industry in profit making behind Barclays, Standard Chartered and KCB and its star is showing no signs of dimming but rather brightening each year after an aggressive local and regional expansion. He has won numerous international accolades including sharing an award with Nobel Laureate Professor Muhammad Yunus for their efforts in securing the livelihoods of the unbanked. He is also involved with the Clinton Foundation. Enough said!

Then we have Michael Joseph. When Safaricom joined the Kenya market it was way behind Kencell (now Zain of course and soon to be .....?)
Over the years through its marketing and technology advancement it now controls around 75% of the entire market with around 13 million subscribers. Its revolutionary Mpesa money transfer service was the first of its kind and was honored worldwide. It has left its competitors trailing in its wake. It is clear that Zain's Zap (or even Yu's Yu cash) is no match for Mpesa.
Michael Joseph is the face of Safaricom. He is synonymous with the company.He has managed to steer it to a whole new level. Even after its competitors reduced prices to crazy levels (others to 1/= a minute) Safaricom's subscribers remain fiercely loyal. Safaricom is the only network with 3G internet and last week even talked about testing 4G network(much faster and easier to upload and download content)

There is no denying that these two are both great. But who do you think is greater? I'd like to know.

GOD BLESS YOUR LIFE
muganda
#2 Posted : Friday, April 02, 2010 7:53:58 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
Interesting question; perhaps because leadership in the two is obvious making them comparable on many levels.

So in my opinion, it depends on which perspective you choose.
1. Man on the street would credit both but would thank James Mwangi more for empowering the needy; hence he takes the pick here

2. Business executive would easily admire and credit Michael Joseph for building the most valuable business in Kenya.

3.Investors have the world to say about what James Mwangi has done with Equity for their investment thus far

4.Employees and Dealers just seem so enamoured with Michael Joseph and then there's the fact he's changed mobile, banking, and now IT industry

Some would criticise James Mwangi as prospering aided by the 'powers that be' just as they would mark down Michael Joseph for managing an industry that saw exponential growth throught Africa (not just in Kenya)

Okay other thoughts:
--I think Michael Joseph would do well if he led Equity Bank.
--Could James Mwangi lead Safaricom to the same level?
--And how does Titus Naikuni's work in tough airline industry compare to the two?
muganda
#3 Posted : Tuesday, April 06, 2010 6:41:42 AM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@youcan'tstopusnow, consulted a couple of people offline and the verdict seems to be Michael Joseph takes the cake and is a more professional leader.
gathinga
#4 Posted : Tuesday, April 06, 2010 8:24:37 AM
Rank: Veteran

Joined: 11/30/2006
Posts: 635
James mwangi is a rough personality and has ignited several uncalled for fights in his tenure.

1. After the Safaricom IPO, Equity refused the Kshs. 1000/- per applicant due to CDSC for shares purchased on loan. His argument was that the shares were not themselves the collateral. Looking at it, this argument was an afterthought, as the application forms were explicit. For this trouble, EB custodial was stopped from trading for one day. The row was finally resolved, don't know how.

2. Anyone familiar with the ongoing headcount downsizing at EB will tell you that its not done in the most professional manner. Staff identified aren't even being paid redundancy. If I have worked for you 5 years, during which you promoted me three time, how do you wake up one day, declare me incompetent and send me home empty handed. I love the way KCB is doing it. Asking for voluntary retirement and paying them off.

3. Mwangi has picked up a row with NBK and Privatization commission on the other hand for injuring the privatization of NBK by issuing comments implying that EB has already bought off NBK.

For his rough edges, JM loses to MJ as greatest CEO
Intelligentsia
#5 Posted : Tuesday, April 06, 2010 9:28:45 AM
Rank: Elder

Joined: 10/1/2009
Posts: 2,436
On professionalism and upholding of corporate governance, MJ lifts the trophee.

IMHO, while not belittling the sheer guts and risk James Mwangi undertook in setting Equity on the course to global acclaim, what he did was not so original in the global micro-finance industry as all he did was merely domesticate/localize the Grameen model of microfinance among the Bangladeshi poor to Kenya's circumstances. The guts and risk was banking on the poor - virtually unheard off & considered suicidal a coupla years back. He forced the entire sector to look and re-look again at the small man and include him in their operations, products and services.
For changing an entire sector and forcing a major paradigm shift in an entire banking sector, JM lifts that one.
wote
#6 Posted : Tuesday, April 06, 2010 10:28:40 AM
Rank: Member

Joined: 10/18/2007
Posts: 217
Hey guys am following this particular debate from a distance however, i can not fail to notice some interesting analysis here and there.
I have a question to put to muganda on your observations. Man on the street, he has empowered the needy'' How has he empowered them? Does he give them loans on lower interest rates than the other Banks do? Has he stopped charging the other charges that other banks Charge? does he give them free ATM services as opossed to the way other banks do?
I had thought but could corrected that equity has only brought banking services closer to wanainchi albeit at a cost as opossed others who concentrated on the high street.
muganda
#7 Posted : Tuesday, April 06, 2010 1:38:27 PM
Rank: Elder

Joined: 9/15/2006
Posts: 3,907
@wote DIGNITY

I'll be the first to confess, I do not bank with Equity and even found it harder to appreciate how a bank with that branch setup, high charges, long queues, not very tight controls could make it. My answers came from average normal mwananchi, you know the juakali artisan, taxi driver, primary school teacher etc.

Self-worth cannot be quantified. And when the common mwananchi stand in line and use Equity Bank, they feel needed, respected, at home. And James Mwangi gave them self-respect. On that note alone, other banks charge the 'unwanted' a much higher toll.
wote
#8 Posted : Tuesday, April 06, 2010 3:02:59 PM
Rank: Member

Joined: 10/18/2007
Posts: 217
Thanks muganda i believe we understand one another on that front.
bkismat
#9 Posted : Tuesday, April 06, 2010 3:33:16 PM
Rank: Elder

Joined: 10/23/2009
Posts: 2,375
banking the unbanked. mpesa=equity. bamba 5 bamba 10 bamba 20 anyone?
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt...
-Mark Twain
gathinga
#10 Posted : Tuesday, April 06, 2010 3:51:35 PM
Rank: Veteran

Joined: 11/30/2006
Posts: 635
James Mwangi must be feeling nice being compared to one Michael Joseph. Am sure he reads this forum....or some1 close to him does. This is one forum where EB is discussed quite liberally.
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