KCB shareholders have approved the deal to acquire 100 per cent of the issued ordinary shares of NBK through a share swap which will make the merged entity the largest commercial bank a with a combined asset base of approximately Sh828 billion.
The acquisition deal awaits approval from the National Bank of Kenya and the regulatory authorities.
Chairman Andrew Kairu said that the merged entity would enable the group to compete more effectively in a changing financial sector with the aid of NBK’s a strong deposit franchise and a wide branch network
“The acquisition is an opportunity to strengthen the deposit base and lending capacity, increase cost efficiencies due to economies of scale, and boost transactional revenue through leveraging of technology.
“This makes it commercially viable proposition that can provide the scale needed to compete and win in the rapidly evolving world of financial service,” he said during KCB’s annual general meeting (AGM).
The merged entity is expected to provide its customers with a variety of branch and Automated Teller Machines (ATM) network which will provide access to credit facilities and a wider array of products and services.
KCB Group has 258 branches, 946 ATMs, 16,642 agents, and merchants, while NBK has 85 branches, 1,500 ATMs and 1,480 agents.
