KCB Told To Go Ahead And Sell National Bank
KEY POINTS
The 20 percent of the National Bank employees who will be laid off will be compensated in line with the Employment Act and other Labor Laws.
KEY TAKEAWAYS
NBK has 1,384 employees while the acquirer’s Kenyan subsidiary has 316 staff members. The authority says the proposed transaction will negatively affect employment since, post-merger, the acquirer intends to merge the operations of NBK and its Kenyan subsidiary.
The Competition Authority of Kenya (CAK) has allowed KCB Group to go ahead and sell National Bank to Access Bank from Nigeria. The approval brings to an end the long wait that had started generating speculations that the deal had been canceled.
“The Competition Authority of Kenya has conditionally approved the acquisition of the entire issued share capital of National Bank of Kenya Limited by Access Bank PLC,” said the Authority in a statement.
Read Also: EIB Global And KCB Bank Sign KShs.32B Deal To Support SMEs, Youth And Women
One of the conditions set by CAK was that Access Bank would have to retain 80 percent of the employees of the National Bank of Kenya and 100 percent of its staff for at least one year.
The 20 percent of the National Bank employees who will be laid off will be compensated in line with the Employment Act and other Labor Laws.
NBK has 1,384 employees while the acquirer’s Kenyan subsidiary has 316 staff members. The authority says the proposed transaction will negatively affect employment since, post-merger, the acquirer intends to merge the operations of NBK and its Kenyan subsidiary.
Read Also: George Odhiambo Appointed New MD For National Bank
KCB Group had bought all the shares in National Bank and made it part of its subsidiary. By then, the National Bank was making massive losses and was on the brink of collapse.
Access Bank (Kenya), formerly Transnational Bank, has 23 branches across 12 counties in the country. It was acquired by the Nigerian lender in January 2020.
National Bank of Kenya controls NBK Bancassurance Intermediary, which engages in bancassurance. This entity is part of the transaction.
Read Also: National Bank Of Kenya Has Been Sold
About Juma
Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. (020) 528 0222 or Email: info@sokodirectory.com
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