This archive report was first published on 2 September 2019.
On September 2, 2019, the Central Bank of Kenya (CBK) granted approval for KCB Group to acquire 100% of National Bank (NBK), despite concerns raised by MPs.
The regulator's decision was made in accordance with Section 13(1) (e) of the Banking Act, allowing KCB to complete the deal within its timelines.
CBK stated that the acquisition would strengthen both institutions by leveraging their domestic and regional corporate, public sector, and retail franchises.
With the government having officially rubberstamped the sale, KCB has already met the minimum threshold required to declare the offer a success, with over 75% of NBK's shares accepted.
As a result, KCB will have the legal powers to compulsorily buy out any dissenting NBK shareholders, with the additional shares expected to be listed on September 30.
Once the deal is completed, KCB is expected to pursue the acquisition of Imperial Bank, which has been under receivership, and expand its operations in Ethiopia.
