KCB prepares to buy National Bank, documents indicate

The National Bank of Kenya's branch in Nyeri town centre. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP

What you need to know:

  • The Kenya Commercial Bank has formally approached the National Treasury and the National Social Security Fund, the major shareholders of NBK, with a written proposal and that away from the limelight the parties are busy exchanging letters, debating the pros and cons of a deal being touted as the government’s best shot so far at finding a lasting solution to the perennial problems of the trouble at National Bank.
  • The transaction could carry major implications for competition, potentially sparking off a scramble for government deposits and banking business on a scale never seen before in Kenya’s history.

The Kenya Commercial Bank has quietly lodged an expression of interest to acquire the National Bank of Kenya, setting the stage for a merger of two of the largest state-controlled banks, documents seen by the Nation indicate.

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