This archive report was first published on 27 September 2019.
On September 27, 2019, the Central Bank of Kenya (CBK) announced the merger of Commercial Bank of Africa Limited (CBA) and NIC Group PLC (NIC), effective September 30, 2019.
The merger was approved by CBK on August 27, 2019, under Section 13(4) of the Banking Act, and by the Cabinet Secretary, National Treasury on September 20, 2019, under Section 9 of the Banking Act.
Following the merger, all subsidiaries will operate under a Non-Operating Holding Company, NCBA Group PLC.
CBA has been operational for over 50 years and is wholly owned by a group of institutional and individual investors with extensive business interests in Kenya and East Africa.
With a market share of 5.6% as at June 30, 2019, CBA has invested in both banking and non-banking subsidiaries in Kenya, Rwanda, Tanzania, and Uganda.
NIC, established in 1959 as an asset finance company, obtained a commercial banking license from CBK in 1995 and merged with African Mercantile Bank Limited in 1997.
With a presence in Kenya, Tanzania, and Uganda, NIC had a market share of 4.3% as at June 30, 2019.
The merger will strengthen both institutions, leveraging on their combined market share of 9.9% and customer base of over 40 million in four East African countries.
