The Central Bank of Kenya (CBK) has announced Co-operative Bank of Kenya’s intentions to acquire 100% stake in Jamii Bora Bank (JBB). However, this will be subject to the following conditions:
- Usual Due Diligence by the relevant professionals
- Board of Directors and Shareholders approval by both lenders
- Regulatory approvals by CBK, Capital Markets Authority (CMA) and Competition Authority of Kenya (CAK)
The cash-strapped JBB has been on the brink of collapse, with the Commercial Bank of Africa (CBA) initially set to acquire it earlier in 2019, with a cash offer of KSh1.4 billion. However, the acquisition was thrown into shambles after CBA merged with NIC Bank.
As of 31st December 2019, Co-op Bank was ranked fourth out of 39 banks in terms of market share in Kenya, with JBB being ranked at 38 out of 39.
Co-op, the third-largest bank by assets in the country, has 159 branches spread across Kenya and South Sudan.
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