Meet the Only Tycoon who Stopped Bank to Close its Branch

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Chrispen

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Kakamega Standard Chartered Bank Branch which was slated to be closed down some six years ago could not shut down because of one prominent tycoon, Ibrahim Ambwere.

The multinational Bank had decided to shut down most of its branches that included Kitengela, Bungoma, Kisii and Warwick – this being part of its effort to cut on extravagance and run a lean business setting amid rising digital banking.

But Kakamega Branch had to survive the decision following threats from a major businessman from the Region, Mr. Ibrahim Ambwere, who was planning to move all his accounts to a different banking institution in the same town.

The scrapping off of the branches was, according to the bank management, geared towards developing the banks’ online and mobile channels to deliver easy and convenient banking to its clients.

A reliable senior banker at Standard Chartered has confirmed that the prominent businessman with wealth spread across Western Kenya influenced StanChart management not to close the Kakamega Branch.

Mr Ibrahim Ambwere, the Western Kenya tycoon with businesses and assets in Kakamega, Vihiga and Trans Nzoia counties, is said to have threatened to move his funds worth billions to a rival bank within Kakamega.

Had it shut Kakamega, Mr Ambwere and other customers would have been forced to shift to ATM or mobile banking or use the Kisumu or Eldoret branches as Bungoma was also on the chopping board.

Mr Ambwere, like many older businesspeople and professionals, is known to have banked with Standard Chartered for decades, being among the first banks, alongside Absa Bank (formerly Barclays), to set up bases in Western Kenya.

He owns a number of prominent buildings in Kakamega and Kitale as well as Chavakali, Mmbale in Vihiga County and other small towns in these regions, which generate millions of shillings monthly in rental income. He also runs other retail and wholesale businesses.

Fearing losing this big accounts to rival banks, therefore Standard Chartered was forced to reconsider the decision to close down the Kakamega office, saving many other account-holders from the inconvenience of travelling far looking for alternative banks.

“I have been banking with Standard for the last over 40 years. I have become so used to it. It’s calm and less exposing,”a client who requested anonymity said, adding that, Ambwere saved many like him.

This person said he was among those who dearly supported Mr. Ambwere’s stand after Standard Chartered notified the more affluent account-holders at the branch of its imminent closure.

Strong competition from other banks such as Equity, Co-operative, Post Bank and ABSA, among others, had also started piling immense pressure on Stan Chart to remain in town.