The Co-operative Bank of Kenya is set to acquire a 100 percent stake in Jamii Bora Bank if the proposed takeover will be finalized. According to a statement from the Central Bank of Kenya (CBK), the acquisition will help diversify the business model of the two banks.
“CBK welcomes the transaction which will diversify the business models of the two institutions and enhance the stability of the Kenyan banking sector,” said CBK in a statement.
Co-op Bank commenced operations in 1965 and is predominantly owned by the 15 million-member Kenyan co-operative movement. It was listed on the Nairobi Securities Exchange in 2008. It was ranked 4 out of 39 banks in terms of market share as of December 31, 2019, with a market share of 9.63 percent with 159 branches in Kenya and South Sudan.
“The Central Bank of Kenya (CBK) has been advised by both Co-operative Bank of Kenya Limited (Co-op) and Jamii Bora Bank Limited (JBB) of Co-op’s interest in acquiring JBB. The proposed acquisition which is subject to regulatory approvals will lead to the acquisition of 100 percent shareholding of JBB by Co-op,” said CBK.
JBB was established in 2010 after the acquisition by City Finance Bank Limited of the business of Jamii Bora Kenya Limited, a Micro Finance Institution. It was ranked 38 out of 39 banks in terms of market share as of December 31, 2019, with a market share of 0.12 percent with 17 branches across the country.
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