Co-operative Bank (Co-op Bank), Kenya’s second-leading bank has acquired 90 percent of Jamii Bora Bank Limited the Central Bank announced Friday.
CBK said the acquisition will be effective August 21, 2020.
This 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 Banking Act.
“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,” said the CBK in an emailed statement.
The acquisition was through the subscription of 224,153,154 new class of ordinary shares that will enable Co-op Bank to inject KSh1 billion and appoint a board to run the business.
The move will see Co-op bank expand its customer and asset base in the region to over 470 billion shillings.
Co-op bank 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.
Jamii Bora Kenya Limited, a Micro Finance Institution was ranked 38 out of 39 banks in terms of market share as at June 30, 2020, with a market share of 0.09 percent and 17 branches across the country.