NSE halts trading NBK, KCB shares

The Nairobi Security Exchange has halted trading of National Bank of Kenya and Kenya Commercial Bank shares as it awaits communication from National Bank of Kenya that is likely to affect both banks.

This comes amid reports that KCB is in plans to acquire some stake in National Bank of Kenya.

Five years ago, the National Bank of Kenya unveiled plans for a rights issue targeting 13 billion shillings to boost its operations as well as finance expansion.

This was however not to be after the plan was vetoed.

The National Social Security Fund is the largest shareholder in National Bank of Kenya with a stake of 48.1 per cent with the National Treasury holding 22.5 per cent and remaining 29.5 per cent held by other investors who trade their shares at the NSE.

The lender has been missing key capital adequacy ratios in recent years after the cash call was vetoed.

However, it seems the two major shareholders have agreed on recapitalizing the National Bank of Kenya.

This is after the NSE Thursday morning suspended trading of shares in National Bank of Kenya.

In a statement, the bourse said: “The Nairobi Securities Exchange wishes to inform investors, shareholders and the general public that we have halted trading of Kenya Commercial Bank (KCB) and National Bank of Kenya (NBK) shares as we await material disclosure from NBK affecting the two counters.”

If successful, the deal by the two listed banks would create a larger financial services institution in the East African region.

Currently, KCB is the largest bank in Kenya by assets.

 

 

  

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