The competition authority (CAK) has ordered NIC and Commercial Bank of Africa (CBA) to retain their workers for at least a year after their merger.
This is among agreements reached to approve the merger that has been approved by Competition Authority, that will see the new lender become third in the country with an asset base of Ksh.444billion ($4.41 billion) this is after KCB and Equity bank.
The parties also agreed that no branches will be closed unless in locations where the two former entities each have a presence.
NIC is a leading bank in asset financing and has a strong base of mid-sized corporate clients.
CBA has a strong retail client base, including digital-only customers on its M-Shwari mobile platform.
National Treasury CS Henry Rotich lauded the move saying it would help strengthen the financial sector.
“Consolidation of the financial sector is something of importance,” he said. “Treasury has been supportive of a sector that is well served by stronger banks.
“So as you see more banks consolidating on voluntary basis, that is a welcome move, so that we can ensure that the banks are strong enough to provide sufficient credit to SMEs,” he added.
President Uhuru Kenyatta, his brother Muhoho and former First Lady Mama Ngina Kenyatta will own stakes worth Ksh8.5 billion in the new entity.
The Ndegwa family, which owns NIC Bank will own shares worth Ksh8.6 billion in the combined entity while billionaire Naushad Merali will hold a Ksh1.8 billion stake in the merged entity.