Kenya Commercial Bank (KCB Group) plans to pump upto Sh3 billion fresh capital into the recently acquired National Bank of Kenya(NBK) an independent subsidiary, for it to meet the statutory Capital Adequacy Ratio. (CAR).
Despite a Sh5 billion injection at the end of 2019, NBK still didn’t meet the capital adequacy requirements.
“When we acquired NBK, we estimated we will provide the subsidiary with capital of Sh7.5 billion to Sh8 billion,” said KCB CEO Joshua Oigara. “We will soon give the balance of Sh2.5 billion to Sh3 billion,”
Before its acquisition, NBK struggled with a huge portfolio of non-performing loans that threatened to sink the bank, loans that KCB inherited after it bought the lender. East Africa’s leading bank by assets plans to reduce NBK’s non-performing loans from 50pc of the loan book to 8pc in two years.
KCB has announced that it will provide the additional capital by June this year.
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