KCB Group has picked Paul Russo to head the National Bank of Kenya (NKB) for a two year transitional period of its integration into Kenya Commercial Bank (KCB) subject to fit and proper approval by the Central Bank of Kenya (CBK).
Mr. Russo who has been serving as KCB Group’s director of Regional Business will now lead the transitional period.
Central Bank of Kenya (CBK) approved the acquisition of 100 percent of National Bank of Kenya’s shareholding (NBK) by Kenya Commercial Bank Group (KCB)
The approval comes two days after KCB’S offer to buyout National Bank of Kenya (NBK) shareholders closed. KCB is Kenya’s biggest commercial bank by assets.
National bank of Kenya is a mid-tier bank that is majority-owned by the government of Kenya.
“The acquisition will strengthen both institutions leveraging on their respective well-established domestic and regional corporate, public sector and retail franchises,” read CBK’s approval statement.
In addition, the Competition Authority of Kenya had earlier given the deal a clean bill of health.
KCB plans to fully integrate NBK into its operations within 24 months during which a number of integration decisions will be taken to structure NBK in delivering more value to the customers.
KCB which owns five other subsidiaries in the region, including a representative office in Ethiopia seeks to create East Africa’s first Ksh.1 trillion valued bank in a quest for consolidation and regional expansion.