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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: 3,905
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: 3,905
@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
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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: 3,905
@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
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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.
muganda
#11 Posted : Tuesday, April 06, 2010 4:02:13 PM
Rank: Elder


Joined: 9/15/2006
Posts: 3,905
Laughing out loudly @gathinga, since Michael Joseph seems to have won that round, perhaps I can pick thoughts on how he compares to Titus Naikuni...

muganda wrote:
Okay other thoughts:
--And how does Titus Naikuni's work in tough airline industry compare to the two?

gathinga
#12 Posted : Wednesday, April 07, 2010 6:31:57 AM
Rank: Veteran


Joined: 11/30/2006
Posts: 635
@Magigi. Naikuni is a different ballgame. MJ and JM took over tiny companies then underdogs in their different industries and built them up to dominant market positions rapidly. While doing this, they introduced totally new concepts to their market segments; MJ liberalized the use of mobile phone by making it easier to own a line and selling airtime in small denominations not to forget per second billing. Al these were deemed impossible by then market leader KENCELL

JM banked on the poor who were believed to be of no economic value. He recognized that the poor will do small but many transactions many times over and therefore give you non funded income on a mass market scale. The poor also borrow in small amounts therefore the risk per borrower is minimal. Having no information on their rights, the poor are damn scared of defaulting, while the rich guy will hire high street lawyers to read through complex borrowing contracts and file unending injunctions in court. The concept of volumes of small denomination transactions was frowned upon then by market leaders BBK.

As for Naikuni, he took over an already large organization that was then a monopoly in domestic and regional routes. He squeezed efficiencies and sealed loop holes and the giant took off. He DID NOT introduce any revolutionary concepts. he had no competition to speak and still doesn't have except for the Nrb-lONDON route.

You will notice that efficiency squeeze has limits and KQ has surpassed that limit since 2007. Instead of relying on additional revenues to grow profits, Naikuni is now relying on gabbling (fuel hedging) which could go either way...as it did in 2008.

While recognizing the difficult and uncertain environment that KQ as an airline operates in, I note that in 2007, Naikuni made a bad call on these hedging contracts that has cost KQ shareholders billions in profits

Naikuni's handling of the Duala crash was an exemplary show on PR and brand management and I give that to him

In the end therefore, the parallel to MJ and JM does not exist
youcan'tstopusnow
#13 Posted : Sunday, April 11, 2010 4:27:42 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
guru267, I would love to hear your thoughts on this discussion. Currently MJ is winning.
GOD BLESS YOUR LIFE
Mkimwa
#14 Posted : Monday, April 12, 2010 11:21:21 AM
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Joined: 10/26/2008
Posts: 380
Based on amazing products that i use, MJ wins for Mpesa.
youcan'tstopusnow
#15 Posted : Wednesday, July 28, 2010 8:45:49 PM
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Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
With MJ going later this year, there will be no one to compare JM to.Sad You know what Nas says, "There's One Life, One Love, so there can only be One King"
GOD BLESS YOUR LIFE
obiero
#16 Posted : Wednesday, July 28, 2010 9:30:12 PM
Rank: Elder


Joined: 6/23/2009
Posts: 13,503
Location: nairobi
everything in Equity will look fine until the economy recesses. Thats when some will understand that the guy wit a net pay less than 10K shld not have been worth the hustle. These guys have no savings!

HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
the sage
#17 Posted : Thursday, July 29, 2010 10:25:29 AM
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Joined: 11/20/2008
Posts: 367
How about Jonathan Ciano, the turnaround artist, this guys has earned a reputation as a man who takes comatose companies getting them fully recovered.
But I give MJ a heads up over JM for innovation. The vibe for JM firing guys like the late Karisa Maitha is wrong.
VituVingiSana
#18 Posted : Friday, July 30, 2010 7:07:58 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,098
Location: Nairobi
gathinga wrote:
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
Whoa! IMHO... JM was RIGHT...

1) If Equity Bank chooses NOT to collateralize the shares through CDSC... So What? Shauri Yao... The 1,000/- fee is punitive! A guy who borrows 10,000/- should not be forced to pay 10% (btw to remove it is another 1,000/-)

2) I can't say but JM can't be involved in every decision! Kwani MJ was checking to see if there is congestion in every base station?

As an investor... I am happy with JM... KCB, pole not so much! The Rights at 25/- are worth 18/- after all these years! Same money in Equity Bank would be up 2x

3) LOL... So what? If EB is interested in NBK, well make the playing field better for EB... Kwani, I pay JM to make NBK look better for others???

This is BIASHARA... If you can't stand the heat... QUIT...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
VituVingiSana
#19 Posted : Friday, July 30, 2010 7:11:09 AM
Rank: Chief


Joined: 1/3/2007
Posts: 18,098
Location: Nairobi
the sage wrote:
How about Jonathan Ciano, the turnaround artist, this guys has earned a reputation as a man who takes comatose companies getting them fully recovered.
But I give MJ a heads up over JM for innovation. The vibe for JM firing guys like the late Karisa Maitha is wrong.
What? Kwani Equity Bank is the government... hiring lousy people & keeping them on? If karisa didn't cut the mustard, he shud have been fired! Or anyone for that matter!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
the sage
#20 Posted : Friday, July 30, 2010 12:14:30 PM
Rank: Member


Joined: 11/20/2008
Posts: 367
Very true VVS, if you have to fire someone you have to. All I am sayimg is HOW you do it. But clearly the way you take it casually, I guess crudity and barbarism are not patented to matatus and councilors.
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