This archive report was first published on 2 September 2019.
On September 2, 2019, the Central Bank of Kenya (CBK) granted approval for the 100% acquisition of National Bank (NBK) by KCB Group, effectively paving the way for the completion of the deal within KCB's timelines.
The regulator's approval was granted in accordance with Section 13(1) (e) of the Banking Act, despite concerns raised by MPs and calls for public participation in the transaction.
According to the CBK, the acquisition will strengthen both institutions by leveraging on their respective well-established domestic and regional corporate, public sector, and retail franchises.
With the government having officially rubberstamped the sale, KCB has already hit the minimum threshold required to declare the offer a success, and trigger the conversion, which would push the acceptance level above the 90% mark.
This gives the bank legal powers to compulsorily buy out any dissenting NBK shareholders. KCB expects to list the additional shares through which it is executing a swap for NBK's equity on September 30.
