This archive report was first published on 9 September 2019.
On September 9, 2019, the Competition Authority of Kenya (CAK) made a significant move in the banking sector by ordering KCB Group to retain at least 90% of National Bank of Kenya employees after the buyout.
According to the regulator, KCB can still lay off 619 workers, which is 10% of the total staff count of 6,191. However, this number is significantly lower than the initial plan to eliminate excess staff and branches.
The CAK approved the buyout partly because KCB will be in a position to support National Bank of Kenya, whose performance has deteriorated over the years. The lender has breached the minimum capital adequacy ratios.
"In order to strike a balance between addressing the public interest concerns and accommodating the strategic intent of the merging parties, the Authority was of the view that granting a conditional approval to the proposed transaction would be appropriate," the regulator said in a statement.
With the merger, KCB will have a total of 6,191 employees, comprising 4,835 from KCB and 1,356 from National Bank of Kenya.
