This archive report was first published on 18 May 2020.
On May 18, 2020, KCB Group announced plans to inject up to KSh3 billion in fresh capital into National Bank of Kenya (NBK) to meet the minimum capital ratios set by the Central Bank of Kenya (CBK).
The additional capital is expected to be provided by June this year, with KCB chief executive Joshua Oigara stating that the lender had initially estimated providing KSh7.5 billion to KSh8 billion of capital when it acquired NBK.
Before its acquisition, NBK struggled with a significant portfolio of non-performing loans, which threatened to sink the bank. KCB has since inherited NBK's share of bad loans and plans to reduce them from 50% of the loan book to 8% within two years.
Financial statements for the year ended December 31, 2019, show that NBK's balance sheet fell slightly to KSh 111.9 Billion from KSh 114.8 Billion the previous year, while gross non-performing loans decreased from KSh 31.5 Billion to KSh 25.2 Billion.
