This archive report was first published on 7 August 2020.
Co-op Bank, Kenya's second-largest bank, has made a significant move in the banking sector by acquiring 90% of Jamii Bora Bank Limited. The acquisition was approved by the Central Bank of Kenya on August 3rd, 2020, and by the Cabinet Secretary for the National Treasury and Planning on August 4th, 2020.
According to a statement by the Central Bank of Kenya, the acquisition was effective from August 21, 2020. This move is expected to diversify the business models of the two institutions, benefiting Co-op Bank's diverse shareholders and enhancing the resilience of the Kenyan banking sector.
Co-op Bank, which commenced operations in 1965, is owned predominantly by the 15 million-member Kenyan co-operative movement. It was listed on the Nairobi Securities Exchange in 2008 and ranked 3 out of 39 banks in terms of market share as at June 30, 2020, with a market share of 9.96 percent and 159 branches in Kenya and South Sudan.
On the other hand, Jamii Bora Bank Limited was established in 2010 after the acquisition by City Finance Bank Limited of the business of Jamii Bora Kenya Limited, a Micro Finance Institution. The bank was ranked 38 out of 39 banks in terms of market share as at June 30, 2020, with a market share of 0.09 percent and 17 branches across the country.
As announced earlier, the Central Bank of Kenya welcomes this transaction, which is expected to benefit Co-op Bank's diverse shareholders and enhance the resilience of the Kenyan banking sector.
August 7, 2020
