Co-operative Bank to take over Jamii Bora Bank
The Co-operative Bank of Kenya has announced its intention to take over Jamii Bora Bank.
In a cautionary announcement issued to the public on Wednesday, Co-op Bank’s Board of Directors said the bank is in discussions with Jamii Bora Bank to acquire 100 percent shareholding in the bank.
Co-op Bank’s board further said the acquisition will strengthen both institutions, leveraging on their respective domestic and regional corporate public sector, retail business and 15 million member co-operative movement.
The proposed acquisition is, however, subject to shareholder and regulatory approvals.
The Central Bank of Kenya has welcomed the proposed acquisition.
“CBK welcomes the transaction that will diversify the business models of the two institutions and enhance the stability of the Kenyan banking sector,” the CBK said in a press release.
Co-operative Bank of Kenya is Kenya’s fourth-largest bank with an asset base of over KSh. 450 billion.
Co-op Bank is associated with CIC Insurance Group with a 27 percent shareholding and Co-op Bank Fleet Africa Leasing Limited where it owns a 25 percent stake.
Jamii Bora Bank, on the other hand, has an asset base of KSh. 12.5 billion shillings. The bank, which has over 350,000 customers, has 17 branches across the country and a customer base of over 350,000 customers.
The Bank also operates Jamii Bora Leasing Limited and Jamii Bora Insurance Agency Limited.
The proposed acquisition comes barely a month after Nigeria’s largest commercial bank by assets, Access Bank completed its acquisition of a local mid-sized lender, Transnational Bank.
Last year, Kenya’s largest bank by assets, KCB Group completed its acquisition of 100 percent of National Bank of Kenya’s ((NBK)) shareholding.
The transaction was the second after the merger of NIC Group and CBA Group to create the NCBA Group, which is currently the third largest bank by assets in Kenya with an asset base of KSh487 billion as at the close of September 2019.