“Having a Board is like having a girlfriend, you have to choose someone you are comfortable to text at midnight.” 

We sat with Kevin Mutiso, founder and CEO of Alternative Circle to discuss why he decided to create a board. Alternative Circle was founded in 2016 with the mission to provide financial access through technology to over 200 million users globally. As a recently founded SME, Kevin explains why he feels SME’s should create boards and discusses his thoughts on the challenges of maintaining good corporate governance practice.  

When did you start Alternative Circle?  

I co-founded alongside Anthony Magayu in 2016 with the aim of delivering financial access to more than 200 million people in Africa and South East Asia. I saw an opportunity to provide mobile loans due to the growth of smart phone and internet penetration.  

Why did you start a board?  

I felt that a board could guide the CEO by providing operational discipline and providing counsel. There are some issues I cannot discuss with my team and the board provides much needed advice.  

How did you select your board members?  

I was looking for a team with excellent banking expertise. I searched for people with experience in raising capital. I wanted people that are respected in the financial sector who can open doors for the business. I aimed to create a board with people that I can build good professional relationships with.  

I am proud to have a great team that consists of John Ngumi, Gachao Kiuna, Kristinn Agnarsson and Steve Mills.  

Most of your board members seem to have financial expertise. What other skills would you like Alternative Circle board members to have?  

When we do decide to expand, I would like to have someone with cyber security expertise.  

Why don’t you have a female board member?  

(Chuckles) Unfortunately the woman I hoped to appoint was unable to accept my offer. I aim to add a woman to the board in the future.  

How do you ensure the board adheres to good corporate governance practice?  

We are in the process of creating a board charter and an accountability system around the responsibility and expectations of board members. 

What is the age dynamic on the Board?  

The youngest board member is 30 years and the oldest person is 66 years.  

Would you consider becoming a public listed company?  

I would. (Pauses for a Nairobi minute) I am. This is something I hope we can achieve in the future.  

Boards of Public listed companies in Kenya are required to adhere to The Central Bank of Kenya (CBK) and Capital Markets Authority (CMA) regulations.  Are you concerned about the increased responsibility and exposure your board will receive if you become a public listed company?  

Not really, I am confident that the board would do a good job. As a SME, we handle sensitive financial data so there are regulations we must adhere to. So, either way as a business we must adhere to the law and we are exposed to regulators.  

What is your advice to SME’s who are considering creating a board?  

If you want to be the best at what you do, you need a board. SMEs go through one of the most daunting challenges and with the right board they can tackle any challenge. (Looks into the distance) Choosing a board is like choosing a girlfriend. You should choose someone you can talk to at midnight! 

Midnight? That’s a bit late isn’t it?  

(Chuckles)  

I left the interview tickled by Kevin’s comments. His analogy of board dynamics to human relationships was not too far off the mark. Through years of undertaking board evaluations for our clients, we have come to the same conclusion: a good board chemistry leads to a productive board dynamic. It is not just about academic and professional fit, rather social compatibility is equally if not more important.  

The Inquisitor