The Central Bank of Kenya (CBK) has given its approval to Co-operative Bank of Kenya to acquire 90% stake in Jamii Bora Bank.
The Co-operative Bank of Kenya had proposed the 100% acquisition of Jamii Bora Bank in March this year.
With the CBK approval, the acquisition will be effective from 21 August.
At the time of the announcement of the acquisition, Co-op Bank said: “The strategic entry of Co-op Bank coming in as a 90% strategic owner is an ‘Inclusive Growth Model’ that particularly safeguards the existing shareholders of Jamii Bora; in that they will now share in the expected future Transformation gains/profitability growth.”
Jamii Bora Bank was founded in 2010, after City Finance Bank acquired the business of Jamii Bora Kenya, a micro finance institution.
With a market share of 0.9% and 17 branches in the country, the bank is ranked 38 out of 39 banks in terms of market share as of 30 June.
Co-operative Bank of Kenya has 159 branches across Kenya and South Sudan
Established in 1965, Co-operative Bank of Kenya is owned by 15 million Kenyan co-operative members and it was listed on the Nairobi Securities Exchange in 2008.
The bank also enjoys a ranking of 3 out of 39 banks in terms of market share as of 30 June. With 9.96% of market share, the bank has 159 branches across Kenya and South Sudan.
Co-operative Bank of Kenya has a total asset base of KES450bn ($4.16bn).
Last month, shareholders of Jamii Bora Bank had given their approval for the acquisition offer from CBK.
Jamii Bora Bank acting CEO Timothy Kabiru said: “The investment could not have come at a better time when entrepreneurs need a business minded bank to help them get back on their feet following the worst of the COVID 19 pandemic.”
