This archive report was first published on 3 September 2019.
Central Bank of Kenya Approves Acquisition of National Bank by KCB ¶
On September 2, 2019, the Central Bank of Kenya (CBK) approved the 100% acquisition of National Bank (NBK) by KCB Group, as per Section 13(1)(e) of the Banking Act.
According to a statement released by CBK, the acquisition will strengthen both institutions by leveraging their respective domestic and regional corporate, public sector, and retail franchises.
Earlier, KCB had announced that it had received acceptances of 262.97 million shares, which translate to about 77.62% of NBK's shares. This came after some resistance from MPs who demanded public participation before the completion of the deal.
On September 3, 2019, KCB Group announced that it had appointed Paul Russo to head National Bank in the capacity of Managing Director during the two-year period of integration. Russo's appointment is subject to approval by CBK.
CBK has stated that it is confident that the acquisition process will be concluded shortly, following the receipt of necessary approvals. The regulator has received a good indication from NBK shareholders and will announce the official results within the legally stipulated timelines.
Source: UGC
