An African proverb says: “It’s when the applause is loudest that people have to get out of the dance.” However, for Nizar Juma, getting the loudest applause is not easy.
He joined Jubilee Holdings on July 11, 2004, as chairman of the board and has certainly been a towering figure in the financial services company’s boardroom for the past 20 years.
Mr Juma believes it is time for Jubilee’s last dance, even as the shareholders’ applause is louder than usual.
Mr Juma joined Jubilee when the net profit was Sh242.7 million, then paid shareholders Sh81 million, but he will, on June 25, take the floor, one last time as chairman to declare a record dividend of Sh1.036 billion in net. The insurance company posted a profit of Sh4.42 billion in the financial year ending December 2023.
“There comes a time when you have to stop… We have to give others a chance,” Mr. Juma said Everyday Business in the interview.
“From 2004, when I joined, I knew nothing about insurance but had a passion for the sector. I have been very fortunate to see Jubilee prosper since then.”
Mr Juma’s deputy, Zul Abdul, who joined the Jubilee board in 2014 and became deputy chairman in March 2020 will be the next chairman, subject to approval by shareholders at the annual general meeting.
He celebrated his 80th birthday last month. While Mr Juma believes he still has the energy to keep going, he says he now wants to spend his time differently. It was another surprise for the executive who in 1992 closed all his businesses, including the Adidas and Orbit Sports franchises and chose to start working for free.
“I believe we have done a service so that more people think about insurance as a necessity. I am glad that I did all this as a volunteer. We do almost everything for money and it would be nice to be able to do some things for reasons beyond money,” said Mr. Juma .
He has influenced almost all other board members including Sultan Allana, Shabir Abji, John Metcalf and Ashif Kassam to work without pay, something he believes makes them truly independent and trustworthy.
Mr. Juma was also instrumental in setting up the Jubilee Children’s Fund.
Jubilee staff give one day’s salary in a year, which the company matches and adds one day’s profit to open the endowment fund.
The fund has helped to reduce the difficulties faced by disadvantaged children in terms of education, health, social and culture. Staff are involved in identifying children in need.
Mr Juma said he is working with the Association of Insurers of Kenya (AKI), the lobby for underwriters, and the Insurance Regulatory Authority to develop the sector.
For his contribution to the industry, AKI will present him with a Lifetime Achievement Award in 2021.
“The whole industry has changed now and I am glad that I have a part in what we are doing as insurance. The penetration is hardly less than 0.5 percent. It is now almost three percent in Kenya and there is more to do,” said Mr. Juma.
“Jubilee was not dynamic at that time. We did not have good relations with brokers and agents. It was a small company. The insurance world at that time was also quite small and no one advertised insurance products. We started promoting and teaching people about insurance.
Mr Juma will exit the Jubilee board along with Shabir Abji, who is also retiring and Jane Mwangi as well as Ashif Kassam – both of whom will not be offering themselves for re-election at the next annual general meeting.
Mr. Abji joined the Jubilee board in 2013 while Mwangi and Mr. Kassam joined in 2016 and 2019. The exit of the three, along with Mr. Juma, means that the board will welcome new faces, including Rosemin Bhanji and Amyn Lalji who joined last week Wednesday.
“We also have to give other people a chance because people can look at me and say, ‘Same person again!’ “I know my shareholders love me because I have earned money for them. I even said at the RUPS meetings that I should participate in their money,” said Mr. Juma.
He challenged industry players to target other informal sectors to change the narrative that insurance is a flimsy expense and preserve for the rich.
Mr. Juma is a board figure, having sat on the boards of more than 80 companies in various sectors, including banking, insurance, real estate and health, but has declined over the years to about 12 in 2022. However, he now says he will give up “practically everything” and stick only to initiatives, which are purely for social good and not for profit.
One of the initiatives he says he likes the most is the Future of Power initiative, which has taken him to more than 70 cities around the world, to teach how to manage through soft power. He said he would continue this initiative.
