Family Bank has announced its CEO Peter Munyiri will exit in June after serving one term. He will however continue to serve as the CEO until expiry of his term.

“Munyiri has given notice to leave the bank at the end of his five-year contract in June 2016,” the bank said in a statement.

Prior to issuance of this statement, the bank’s communications manager Norman Mudibo had denied reports that Munyiri was leaving the bank. Mudibo told the Star on Wednesday evening that there were no such plans.

The announcement comes a month after the bank fired nine managers who were implicated in the transfer of the Sh791 million wired to a Family Bank account after which the money were promptly transferred to various accounts in more than 10 banks.

The Central Bank Act requires financial institutions to report transactions above Sh1 million or those deemed complex, unusual or suspicious to the Financial Reporting Centre.

The managers implicated in the NYS scam included Family Bank’s KTDA Plaza branch manager Robert Nyaga, operations supervisor Martin Kagiri, relationship manager Meldon Onyango, branch customer service supervisor Josephine Waira, the platinum manager, the head of the risk and compliance department and Nancy Njambi.

Announcing their sacking on December 22, Munyiri said the decision was taken to protect the bank’s reputation.

On November 18, the DPP asked Central Bank to investigate and obtain statements from the seven bank officials into the NYS scam.

Keriako Tobiko said the employees would be probed “to determine whether they should be charged for facilitating, aiding or abetting the theft of the amount from the NYS.

Insiders say the board was under pressure to let go of Munyiri even though he was not mentioned in the scandal, since he is the principal officer under whose reign the fraud took place.

The bank has also allegedly been fined heavily for its role in the NYS saga by the Central Bank of Kenya. However CBK did not confirm or deny these claims.

Prior to joining Family Bank in 2011, Munyiri, a seasoned banker, worked as the deputy group CEO for Kenya Commercial Bank.He has also previously worked for Standard Chartered Bank which he joined in 1995.