By KBC Reporter
The Central Bank of Kenya approved Kenya commercial Bank to run as a non-operating holding company.
This is after KCB Limited obtained all regulatory approvals on the transfer of the Banking business to its fully owned subsidiary KCB Bank Kenya Limited.
KCB Group Chairman Ngeny Biwott says that the new structure will increase efficiency in access to and allocation of capital while enabling the equity markets to place appropriate value on the Group’s business separate from the current banking operations.
The bank received approvals from the Central Bank of Kenya, the Capital Markets Authority and the National Treasury. He says the reorganization which will effectively separate the banking businesses from other incidental business entities will however not result in any change in the ownership structure of Kenya Commercial Bank Limited.
Biwott says they are confident as a board that the re-organization will result in operational efficiencies and better financial performance for the Bank.
The new units will be able to operate independently while being supervised by the mother company to ensure that the activities are run according to the laid down practices and move towards boosting the bank’s financial performance remarkably.
Biwott said that to enable KCB to achieve its Pan-African vision, and sustain growth in earnings and assets, the Group requires a structure that will allow it to have the easiest path to expand without compromising any of its existing businesses.
Kenya Commercial Bank Limited will now oversee KCB Kenya and KCB’s regional units in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan.
The vehicle will also own KCB Insurance Agency, KCB Capital, KCB Foundation and all associate companies.