Why CRDB investors want CEO to remain in office even after expiry of 10-year tenure

Media/news company

Mwananchi Communications Limited

Arusha. Shareholders of CRDB Bank Plc have expressed a desire for Group Chief Executive Abdulmajid Nsekela to remain in office beyond the legally permitted 10-year tenure, citing strong financial performance, dividend growth and expansion under his leadership.

The call was made during the bank’s 31st Annual General Meeting in Arusha, where shareholders reviewed the institution’s performance and long-term strategy.

Shareholders said the bank had delivered significant value since 2018, when CRDB’s share price on the Dar es Salaam Stock Exchange stood at about Sh95. By April 2026, the price had risen to around Sh3,000.

Dividend payments also increased sharply, from Sh5 per share in 2018 to Sh90 per share following the 2025 financial results, which shareholders described as the strongest in the bank’s history.

The approved dividend will result in a total payout of Sh235.1 billion compared to Sh169.8 billion distributed in the previous year.

CRDB’s market capitalisation now exceeds $2.8 billion, with shareholders citing it as evidence of improved investor confidence.

One founding shareholder, Godfrey Mosha, said the bank had recorded unprecedented growth in profitability and balance sheet strength under Dr Nsekela.

He said profits had increased by more than 1,000 percent since 2018, while total assets rose from Sh7.6 trillion to Sh23.9 trillion by 2026.

Customer deposits increased from Sh4.8 trillion to Sh16.2 trillion, while loans expanded from Sh3.6 trillion to Sh14.7 trillion.

“These are extraordinary results. We should not lose leadership that has delivered this level of growth,” he said.

According to the bank’s annual report, CRDB holds 28 percent of customer deposits, 27 percent of banking sector assets, 29 percent of loans and 30 percent of post-tax profits in Tanzania’s banking industry.

A shareholder and former Prime Minister Frederick Sumaye said leadership transitions in strong-performing institutions should be carefully considered, noting that changes in senior management can affect investor confidence and performance.

Shareholders also pointed to the bank’s “Evolve” strategy (2023–2027), which has driven expansion in digital banking, regional operations and financial inclusion.

More than 98 percent of transactions now occur outside branches, while 50 percent of new accounts are opened digitally. About 40 percent of transactions are conducted outside normal branch hours.

CRDB has expanded operations to Burundi, the Democratic Republic of Congo and Dubai, strengthening its regional presence.

In the first quarter of 2026, the bank posted a profit after tax of Sh206 billion, the highest quarterly profit recorded by any bank in Tanzania.

Subsidiaries also recorded growth, including CRDB Bank Burundi (Sh12.9 billion profit), CRDB Bank DRC (Sh828 million) and CRDB Insurance (Sh1.8 billion).

Despite calls for continuity, shareholders said they respect regulatory limits on tenure but urged authorities to consider the broader interests of stability and sustained growth.

A committee led by shareholder Christopher Gachuma has been formed to present their views through official channels.

Shareholders said their position reflects a desire to preserve institutional performance and maintain CRDB’s growth trajectory into its next strategic cycle.