This archive report was first published on 7 August 2020.
On August 21, 2020, Co-op Bank of Kenya will officially acquire a 90% stake in Jamii Bora Bank, following approval from the Central Bank of Kenya (CBK) and the National Treasury.
The deal, valued at Sh1 billion, was endorsed by Jamii Bora shareholders and marks a significant expansion for Co-op Bank in Kenya's banking sector.
According to a CBK press statement, the transaction will 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's growth strategy has been focused on expanding in Kenya, with the lender owning a 51% stake in Co-op Bank South Sudan and holding stakes in other local companies.
Moody's, a global rating agency, had previously stated that the Jamii Bora deal would serve as a springboard for Co-op Bank to increase its share of the loan book for small and medium-sized enterprises.
