CO-OP Bank has acquired Jamii Bora Bank after its struggle in the market. This comes after the plan by CBA to acquire the bank for sh1.4billion failed to come through. CO-OP Bank grabbed the opportunity with both hands.
This has saved Jamii Bora Bank from becoming extinct. The small lending institution shows a bad debt pattern amounting to 69percent, equal to its loaning book. However the executives from the banks have refused to comment on the progress of the transaction.
Through this deal, CO-OP Bank is going to become stronger in the region. Some of its previous investments are; 15.8 percent shareholding in Uchumi Super Markets to the tune of sh500million and sh412 million loan to Kenya Airways in 2019.
Analysts say that has come at the right time as a way of saving Jamii Bora Bank and therefore it will not affect the bank’s profitability.
Since 2016 there have been major mergers and acquisitions in Kenya .KCB acquired National Bank while CBA merged with NIC Bank to form NCPBA Bank.