This archive report was first published on 28 September 2019.
The Central Bank of Kenya (CBK) has approved the merger of NIC Group PLC and Commercial Bank of Africa (CBA), paving the way for the creation of the third-largest bank in the country. The merger was completed on October 1, 2019, and all subsidiaries will operate under a Non-Operating Holding Company, NCBA Group PLC, as stated by CBK.
According to CBK, the banking business in Kenya of the merged institutions will operate as NCBA Bank Kenya PLC. This means that all account holders, depositors, employees, creditors, and other stakeholders of the existing institutions will now deal with NCBA Bank Kenya PLC and NCBA Group PLC.
Isaac Awuondo, Group Managing Director of CBA, will serve as the Chairman of NCBA Bank Kenya PLC, while John Gachora, his counterpart at NIC Group, will serve as NCBA Group Managing Director. Awuondo stated, "This name is the coming together of NIC and CBA and is just the beginning of the fusion of the two banks."
The merger will give NCBA group a 9.9 per cent market share in Kenya's financial services sector and a customer base of over 40 million in four East African countries. Gachora added, "Our plan is to spend the next one-month finalising the harmonisation of our systems so that all our customers can enjoy seamless services."
By November 1, all NCBA customers are expected to experience the same service levels regardless of their previous relationship at NIC or CBA.
