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Commercial Bank of Africa (CBA Group) and NIC Bank have announced a new leadership team that will be effective upon finalisation of the merger of the two banks which will create Kenya’s second largest bank in terms of assets.
Isaac Awuondo, who is currently the Group Managing Director of CBA will become Chairman of the Kenyan banking subsidiary while Mr John Gachora, who is currently the Group Managing Director of NIC Group will become the Group Managing Director and Chief Executive Officer of the combined entity.
Mr Isaac Awuondo will continue to provide the day to day leadership of the Digital Business as we develop its long term strategy while Mr Gachora will be responsible for the day to day management of the Group’s businesses, the two companies said in a joint statement.
The two banks have been holding talks with market regulators and other stake holders seeking approval to merge their operations. Shareholders of both institutions recently gave the go-ahead for the union. The Competition Authority of Kenya has also approved the merger. The entire process is expected to be finalized by the end of the second quarter of 2019.
The new entity will exist as a listed company on the Nairobi Securities Exchange. It will operate more than 66 bank branches within and outside Kenya with a workforce of 1,872 employees. The Competition Authority notes that the coming together of the two financial institutions will not lead to unhealthy competition in the banking sector.
“The executive team to support Isaac and John will be announced in due course. Please join us in wishing both Isaac and John great success in their respective future roles. In the interim and until the merger is approved by all requisite regulators, the two companies will continue to operate independently.” The two banks noted in a notice to the staff.