This archive report was first published on 4 November 2019.
On October 4, 2019, KCB Group issued 142.9 million new shares to former National Bank of Kenya (NBK) shareholders, including the National Social Security Fund (NSSF) and the National Treasury, as part of a share swap deal.
The shares were valued at Sh5.9 billion based on KCB's closing price of Sh41.85 on that day.
However, the share price has since rallied to hit highs of Sh54, inflating the value of the stake held by former NBK investors to Sh7.7 billion.
This represents a paper gain of nearly 30 percent or more than Sh1.7 billion in a month, providing almost immediate benefits to the ex-NBK owners.
The merger between KCB and NBK was completed by swapping one KCB share for 10 NBK shares, with KCB planning to fully integrate NBK within two years.
