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The billion-shilling cost of promoting the wrong leaders

Africa News News African September 29, 2026 · Comments off

In August 3-5, 2026, leaders from across Africa gathered at “The Resilience in Leadership Africa Conference” in Nairobi that was themed, “Enhancing Our Capacity, Human Security and Sustainability.” The conference underscored that poor leadership is eroding institutions, draining productivity and weakening resilience.

For too long, organisations have equated tenure and performance metrics with leadership potential. The longest‑serving employee or the highest revenue generator is assumed to be the natural successor.

Yet this formula has produced leaders who lack empathy, emotional intelligence, and interpersonal skills – the very qualities that inspire teams and sustain organizational culture. The result is disengagement, attrition, and spiraling costs.

Early in my career, I appointed a long‑serving and top‑performing team member to lead Regional Relationship Managers. Within two months, complaints poured in: poor communication, lack of empathy, and an inability to resolve conflicts.

Despite his stellar performance record, he was not suited for leadership. I had to replace him with someone who could connect with the team, proving that leadership is about people, not just numbers. This is not unique. Across Kenya, companies that promote leaders based solely on tenure or performance often face high turnover and low morale.

A Federation of Kenya Employers survey (2025) found that 54 percent of employees cited poor management as the main reason for leaving their jobs. In other words, the problem is systemic and costly. The National Conference on Workplace Protection (May 25-26, 2026) estimated that workplace harassment and poor leadership cost Kenya’s private sector Sh95.5 billion annually.

Poor leadership directly impacts organisational performance and costs. Contrast this with organizations that have embraced holistic leadership selection. Safaricom, for example, has invested heavily in employee engagement surveys and leadership development programs.

By prioritising emotional intelligence and interpersonal skills, the company has consistently ranked among Kenya’s “Best Places to Work.”

The lesson is clear: when leaders connect with their teams, performance follows. When employee turnover is low the replacement costs are lower, saving companies hidden costs borne in recruitment processes.

Organisations must invest in leadership development. Continuous training, feedback, and tools such as 360‑degree feedback are essential. Fortune 500 companies like Google and Netflix use these systems to promote transparency and fairness.

Kenyan firms are beginning to follow suit, recognizing that leadership quality is a governance and economic imperative. Annual leadership surveys, employee engagement tools, and structured mentorship programs can help organizations identify and nurture leaders with the right skills. These investments pay off in retention, engagement, and ultimately, financial success.

It is time to rethink leadership selection. Tenure and performance metrices can no longer be the yardstick of leadership appointments.

What sustains organizations are leaders who build Trust, show empathy, demonstrate emotional intelligence and interpersonal skills.

Poor leadership choices lead to broken cultures, disengaged employees and hidden cost draining company profits. Strong leadership is not optional; it is the cornerstone of an organization’s survival and success.

Eunice Kuria is a leadership professional

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