The Central Bank of Kenya has given its blessings to the Co-operative Bank of Kenya to acquire 90 percent of Jamii Bora Bank. According to the CBK, Co-operative Bank will assume the 90 percent of the shareholding from August 21, 2020.
The announcement follows CBK’s approval on August 3, 2020, under Section 13 (4) of the Banking Act, and approval by the Cabinet Secretary for the National Treasury and Planning on August 4, 2020, pursuant to Section 9 of the
Co-op Bank commenced operations in 1965 and is owned predominantly by the 15 million-member Kenyan co-operative movement.
It was listed on the Nairobi Securities Exchange in 2008. It was ranked 3 out of 39 banks in terms of market share as at June 30, 2020, with a market share of 9.96 percent and 159 branches in Kenya and South Sudan.
JBB, on the other hand, was established in 2010 after the acquisition by City Finance Bank Limited of the business of Jamii Bora Kenya Limited, a Micro Finance Institution.
The bank was ranked 38 out of 39 banks in terms of market share as of June 30, 2020, with a market share of 0.09 percent and 17 branches across the country.
As was announced earlier, CBK welcomes this transaction which will diversify the business models of the two institutions, benefitting Co-op Bank’s diverse shareholders and enhancing the resilience of the Kenyan banking sector.
So far, the measures taken by CBK in the recent past to strengthen the banking sector, including review of business models and consolidation, have been beneficial in enabling the sector to ride through the pandemic period while supporting their customers and the economy.