Kenya Commercial Bank Group and National Bank of Kenya are this afternoon set to announce a potential merger deal.
Sources have intimated to Citizen Digital that management of the two lenders are currently held up in a meeting to fine tune the deal.
Information of the potential merger became apparent on Thursday morning when trade at the Nairobi Securities Exchange on the two counters were suspended.
Traders told Citizen Digital they were informed of ‘material information’ on the two counters which led to the trade halt. It is not clear whether it is a merger or a buyout.
If successful, the merger or buyout of the two listed lenders is expected to create a larger financial services sector player in the region.
Currently KCB is Kenya’s largest bank by asset base. In its full year 2018 financial report, KCB Group net profit grew by 22percent to a record Kshs.24 billion.
On the other hand, National Bank saw its profit decline by 98percent to Ksh.7 million, up from Ksh.400 million in the previous year.
Realignment of Kenya’s banking sector has been on in the last two years. This has seen new entrants into the market among the SBM Kenya.
Acquisitions have also been rife with KCB most recently acquiring beleaguered Imperial Bank of Kenya which was placed under receivership in October 2015.
In 2017, Diamond Trust Bank also acquired Habib Bank Kenya.
Only this week shareholders of CBA Group and NIC Group approved planned shareholding of the two lenders.