Kenya’s second-leading bank, Co-op Bank has officially acquired 90pc of Jamii Bora Bank Limited following approval by the Central Bank of Kenya on August 3rd 2020 and approval by the Cabinet Secretary for the National Treasury and Planning on August 4th, 2020, CBK has said in a statement.
The Central Bank of Kenya (CBK) announces the acquisition of 90 percent of the
shareholding of Jamii Bora Bank Limited (JBB) by Co-operative Bank of Kenya Limited
(Co-op Bank) 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
Co-op Bank commenced operations in 1965 and is owned predominantly by the 15
million-member Kenyan co-operative movement. It was listed on the Nairobi Securities
Exchange in 2008. It 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.
JBB was established in 2010 after the acquisition by City Finance Bank Limited of the
business of Jamii Bora Kenya Limited, a Micro Finance Institution. The bank 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.
As was announced earlier, 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.
So far, the measures taken by CBK in the recent past to strengthen the banking sector,
including review of business models and consolidation, have been beneficial in enabling
the sector ride through the pandemic period while supporting their customers and the
CENTRAL BANK OF KENYA
August 7, 2020
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