Kenya’s largest lender by assets, KCB Group (KCB) has submitted a proposal that will see it acquire 100% of the ordinary shares of National Bank of Kenya Limited (NBK).
In a statement sent to newsrooms, KCB Group CEO and MD Joshua Oigara said the transaction fits within KCB’s expansion strategy and gives it a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust and financially sustainable organisation. “The proposed transaction will further consolidate the banking sector in Kenya and will create stronger institutions enabling KCB to play a bigger role in the financial inclusion agenda. The acquisition would accelerate the Group’s growth ambitions and enhance value to all stakeholders,” said Mr. Oigara.
Both KCB and NBK are listed on the Nairobi Securities Exchange (NSE). The offer is subject to shareholder and regulatory approvals and has been served on NBK.
KCB Group, which has presence in six countries and a representative office in Ethiopia, has been keen to tap into new growth opportunities while reinforcing existing market capabilities.
Its worth noting that the National Social Security Fund (NSSF) and the Government of Kenya have a combined shareholding of 70.55 percent in NBK at 48.05 percent and 22.50 percent respectively. On the other hand, the Government owns a 17.53% stake in KCB Group while NSSF holds 6.05 percent in the Bank.
KCB will provide further details in due course as required.