Stakeholder management during the Kenya Commercial Bank (KCB) rights issue of 2004

Abstract

This study had two objectives. The first objective was to establish how the Kenya Commercial Bank managed the interests of its stakeholders during the Rights Issue program. The second objective was to establish the challenges encountered in managing those interests. In undertaking the study, all the Rights Issue project team members, totaling 8, were interviewed. From the KCB's Clients team, the bank's Rights Issue Project Manager, the KCB Company Secretary and the KCB's Registrar were interviewed. Others interviewed included the project's financial advisor and its leading sponsoring stockbroker, both from Suntra Stockbrokers; the Reporting Accountant from Ernst and Young; the project's legal advisor from Oraro and co. Advocates; and the Public relations/Advertising consultant from Ogilvy and Mather. Data collection was done by use an interview guide. The data was recorded by writing the responses as provided by the respondents. In addition, Secondary data was derived from the Rights Issue Information Memorandum and the reports of the results of the Rights Issue project. Research findings revealed that through the stakeholder management approach taken by identifying key stakeholders, getting to know what their issues and interest were. Addressing those issues and concerns and involving them throughout the project. Arising from the findings, it was suggested that future studies on KCB and other companies with similar experiences of stakeholder management should be carried out to document how the interests of stakeholders are managed and the challenges they face arising from the uniqueness of each company or sector m terms of structure and management culture.