The Central Bank of Kenya has announced the acquisition of 90 percent of the shareholding of Jamii Bora Bank Limited by the Co-operative Bank of Kenya Limited effective August 21st, 2020.
This follows the approval by CBK on August 3rd, 2020 under section 13(4) of the Banking Act, and approval by the National Treasury Cabinet Secretary Ukur Yatani on August 4th, 2020 pursuant to section 9 of the Banking Act.
Coop bank which was listed on the Nairobi Stock Exchange in 2008 was ranked 3rd out of 39 banks in terms of the market share as of June 30th, 2020 with a market share of 9.96 percent and 159 branches in Kenya and South Sudan.
Jamii bora Bank was established in 2010 after the acquisition by City Finance Bank Limited.
In the recent past, CBK has taken measures to strengthen the banking sector including a review of business models and consolidation have proven to be beneficial in enabling the sector to ride through the COVID-19 Pandemic period while supporting their customers and the economy.