This archive report was first published on 9 August 2019.
On August 9, 2019, the National Treasury gave the green light to KCB Group's planned takeover of National Bank, despite opposition from the National Assembly.
Acting Treasury Cabinet Secretary Ukur Yatani stated that the government had given the deal a clean bill of health, citing that the move was in the best interest of the government to consolidate its shares in the two lenders.
However, the National Assembly's Finance and Planning Committee had previously recommended that the Treasury abandon the deal and instead find ways to inject fresh capital into National Bank.
The committee also claimed that KCB's offer was below the bank's value, sparking concerns among lawmakers.
Despite these concerns, KCB stated that it was available to discuss its offer with parliament and that it had received approvals from its shareholders to pursue its rival as part of its growth strategy.
The Ksh.5.6 billion offer to National Bank involves a 1-10 share swap in favor of KCB at an average price of 3.88 cents.
Shareholders of National Bank have until the end of August to consider the offer.
