This archive report was first published on 27 September 2019.
On September 30, 2019, the Central Bank of Kenya (CBK) gave its final approval to the merger between Commercial Bank of Africa (CBA) and NIC Group Plc, paving the way for the creation of a new entity, NCBA Group Plc.
As of October 1, 2019, all subsidiaries of the two banks will operate under the new holding company, NCBA Group Plc.
CBK urged all account holders, depositors, employees, and creditors of the existing institutions to deal with NCBA Bank Kenya PLC and NCBA Group PLC.
The combined entity, NCBA Group, will have a market share of 9.9 percent and a customer base of over 40 million in four East African countries.
According to CBK governor, the merger is part of a larger trend of consolidation in the banking sector, driven by stable liquidity and capital adequacy levels.
Related to this trend is the ongoing merger between KCB and NBK, which is expected to solidify KCB's position as the market leader.
