This archive report was first published on 3 September 2019.
On September 3, 2019, Kenya Commercial Bank (KCB) announced plans to acquire National Bank of Kenya (NBK), with the takeover expected to be completed soon following regulatory approvals.
During an AGM earlier in the year, KCB CEO Joshua Oigara told shareholders that the problem at the National Bank has always been at the top, and that the board did not intend to keep the management of NBK.
“The board has looked at the risk and what is the risk profile. The board does not intend to keep the management of NBK. The board has no intention of keeping the NBK board. There is no (such) intention,” said Oigara.
Fast forward to 2019, and KCB has now appointed Paul Russo as the MD designate for NBK during the two-year transitional period as the lender becomes integrated with KCB.
Russo’s appointment is subject to regulatory approval from the Central Bank of Kenya.
Currently, NBK is led by Wilfred Musau, who has been at the helm of the bank since 2016. Russo, who currently serves as the Regional Business Director for KCB, will lead the transition team that will report to Oigara.
The Mang’u High School alumni holds an MBA in Strategic Management from Strathmore University, having earned an undergraduate degree from Moi University.
His appointment may point to a move by KCB to restructure the new NBK unit, especially in terms of new staffing.
At the same time, KCB expects that its acquisition of NBK will be concluded soon following regulatory approvals from CBK, Competition Authority of Kenya (CAK) as well as CMA.
