The Cabinet Secretary for National Treasury and Economic Planning Njuguna Ndungu announced the appointment of Sarah Serem as the new Chairperson of the Board of Directors of the Kenya Post Office Savings Bank in a recent gazette notice.
This appointment, made in accordance with the powers granted by section 5 (2) (a) of the Kenya Post Office Savings Bank Act (Cap. 493B), is set to take effect on January 13, 2023 and will last three years.
Sarah Serem, who was known as a forceful and self-assured public official, stepped down as chairperson of the Salaries Review Commission (SRC) in December 2017, having completed her term.
Kenya Post Office Savings Bank is a government-owned financial institution that provides Kenyans with savings and credit products. The bank has been in operation for over a century and has made significant contributions to financial inclusion and national economic growth.
Sarah Serem’s appointment as Chairperson of the Board of Directors comes at a critical time for Postbank, which is in severe financial distress and has seen its management spend more than Ksh 10 billion of investors’ money.
An audit of the books of accounts of the state-owned savings banks revealed that the bank is unable to account for Ksh 1.7 billion in customer deposits and savings.
Among other issues raised by Auditor General Nancy Gathungu in the audit recently presented to Parliament, cashiers may have stolen more than Ksh 35 million in customer savings.
The bank’s future, according to the report, is bleak due to its unsustainable reliance on government assistance.
