KENYA President’s Bank Buys Jamii Bora Bank

Kenya’s President Uhuru Kenyatta

By Victor Juma

Commercial Bank of Africa (CBA) has made a Sh1.4 billion cash offer to buy out Jamii Bora Bank, expanding the Kenyatta family’s business empire which transcends banking, dairy, real estate, hospitality and manufacturing sectors.

The Jamii Bora acquisition bid comes only weeks after CBA announced a reverse takeover of NIC Group, which is listed on the Nairobi Securities Exchange (NSE).
The combined CBA, NIC and Jamii Bora business will rank as Kenya’s third-largest banking entity after KCB and Equity.
The three will have total assets of about Sh457 billion, rivalling KCB and Equity, which have assets of Sh684.1 billion and Sh560.3 billion respectively.
CBA is majority-owned by the wider Kenyatta family, whose members include President Uhuru Kenyatta.

People familiar with the underway transaction say CBA will hold Jamii Bora privately and also own a stake in the merged operations of CBA and NIC whose shares will be listed on the NSE.CBA’s microcredit business, M-Shwari, is to be spun off to Jamii Bora while CBA/NIC will focus on their mainstay corporate and SME banking.
“Due diligence and negotiations have been ongoing since last year and the deal is likely to close in a matter of weeks,” said a source who is involved in the deal but requested anonymity to speak candidly.
CBA Group chief executive Isaac Awuondo declined to comment on the matter.

CREDIT: Daily Nation

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