This archive report was first published on 7 August 2020.
On August 21, 2020, the Co-operative Bank of Kenya will acquire a 90% stake in the struggling Jamii Bora Bank (JBB), following approval from the Central Bank and the National Treasury.
According to the Central Bank, 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, the third-largest lender in Kenya with a 9.96% market share as of June 30, 2020, has a total of 159 branches in Kenya and South Sudan.
On the other hand, Jamii Bora Bank, a small-size lender ranked 38 out of 39 banks with a market share of 0.09%, has 17 branches across the country.
Established in 2010, Jamii Bora Bank was formed after micro-finance institution Jamii Bora Kenya Limited was acquired by City Finance Bank Limited.
Co-op Bank expects the acquisition to strengthen both institutions by leveraging on their respective domestic and regional corporate public sector.
This acquisition marks the latest in a series of consolidation deals in the Kenyan banking sector, following transactions between KCB Bank and National Bank, as well as CBA and NIC Bank.
