Central Bank of Kenya (CBK) has approved the merger deal between the Commercial Bank of Africa (CBA) and NIC Group Plc. effective September 30, 2019.
Following the merger, effective October 1, 2019, all the subsidiaries will operate under a Non-Operating Holding Company, NCBA Group Plc.
Furthermore, CBK urged all account holders, depositors, employees, and creditors of the existing institutions to deal with NCBA Bank Kenya PLC and NCBA Group PLC.
The combined entity, NCBA Group, will have a market share of 9.9 percent and a customer base of over 40 million in four East African countries. As of June 2019, CBA had a market share of 5.6 percent while NIC commanded 4.3 percent.
CBA’s shareholder passed the merger resolution on April 16, 2019 while NIC shareholder approved the amalgamation deal on April 17, 2019.
The merger comes as CBK governor alluded that he expects mergers and acquisitions to continue in the banking sector on the back of stable liquidity and capital adequacy levels.
The much-debated KCB-NBK union is in its final stages in a move seen to consolidate KCB’s market leader position.
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