This archive report was first published on 9 January 2020.
Published on January 9, 2020, KCB Group has injected Sh5 billion into its newly acquired subsidiary National Bank of Kenya (NBK) to shore up its capital.
The injection enables NBK to comply with capital adequacy requirements, bolstering its financial resources, according to National Bank.
Initially, KCB had estimated a capital injection of up to Sh7.5 billion, but the actual figure was pegged on the success level of NBK's bad debt recovery.
As of March 2019, NBK held a non-performing loan book of Sh27 billion, representing a growing NPL ratio of over 50 percent.
The bank's core capital had dropped to Sh993.7 million in September 2019, below the minimum requirement of Sh1 billion.
Despite the challenges, NBK is projected to reduce its gross non-performing loans to 20 percent in 2020 and 10 percent in 2023.
