Treasury Supports KCB National Bank Takeover

The Treasury in Kenya is backing a proposed takeover of the National Bank of Kenya (NBK) by KCB Group. The share-swap deal has received the support of Government as an important move in protecting and supporting the country’s banking sector.

The support was announced by acting Treasury Cabinet Secretary Ukur Yatani and is significant as the Government is the majority shareholder of NBK, which has been struggling.

However, Yatani’s statement of support comes following a recommendation by the Parliamentary Committee on Finance that the acquisition be halted and alternative routes pursued.  This is despite a warning from Central Bank Governor Patrick Njoroge that the acquisition is the only option given NBK’s current state.