KCB Group has made an offer to acquire 100% shares of domestic peer National Bank of Kenya (NBK).

The move comes at a time when a series of consolidations is underway across the Kenyan banking sector. Last week, another Kenyan lender NIC Bank secured shareholder approval for its merger with Commercial Bank of Africa (CBA).

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

KCB proposed the transaction through a share swap of ten ordinary shares of NBK against one ordinary share of KCB.

However, KCB did not disclose the valuation for NBK.

In the recent years, NBK is troubled with increasing bad debts. The deal, if advances, is expected to restore the bank’s market position.

The Kenyan government holds a 22.5% stake in the bank. The National Social Security Fund (NSSF) holds 48.06% and the remaining 29.44% is with public.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

On the other hand, the National Bank of Kenya acquisition is aligned with the KCB’s expansion strategy. It will also help bolstering its presence in existing market.

KCB Group CEO and MD Joshua Oigara said: “The proposed transaction will further consolidate the banking sector in Kenya and will create stronger institutions enabling KCB to play a bigger role in the financial inclusion agenda.

“The acquisition would accelerate the Group’s growth ambitions and enhance value to all stakeholders.”

The acquisition offer is subject to respective shareholder and regulatory approvals.

Established in 1896, KCB Group is one of the largest commercial bank in East Africa with 258 branches.

Besides Kenya, the bank operates in Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep).