CBK approves acquisition of National Bank by KCB : The Standard

The Central Bank of Kenya (CBK) has approved the acquisition of 100 per cent shareholding of National Bank of Kenya Limited (NBK) by KCB Group. The merger will create Kenya’s largest bank by assets and market share with a balance sheet of Sh828 billion as per the two lenders’ December 2018 disclosures. KCB owns banking subsidiaries in Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan. It also has a representative office in Ethiopia. In addition, the Group owns non-banking subsidiaries such as KCB Insurance Agency, KCB Capital, and KCB Foundation.

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KCB Group oversees operations of KCB Bank Kenya Limited and all other subsidiaries. The acquisition will strengthen both institutions leveraging on their respective well-established domestic and regional corporate, public sector and retail franchises. Acting Treasury Cabinet Secretary Ukur Yatani last moonth said in Parliament the government has full faith in the deal. Yatani was responding to objections raised by the Departmental Committee of Finance and National Planning of the planned buyout through a share swap. KCB said it was ready to present justification for the takeover, which has been billed as the only lifeline for the struggling NBK.

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The buyout was initiated by KCB in April in a proposal that has met little resistance with blessings from CBK, the Capital Markets Authority and the National Treasury. KCB chief executive Joshua Oigara headed the transition team guiding the purchase of NBK. NBK has been operating below core capital since 2013.

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Patrick NjorogeCentral Bank of KenyaNational Treasury