Kenya's Commercial Bank of Africa set to buy Jamii Bora Bank
The R190 million- worth deal is set to expand the Kenyatta family's business empire.
Commercial Bank of Africa (CBA) – which is owned by the Kenyatta family, whose members include Kenya’s President Uhuru Kenyatta (pictured) – is set to buy out Jamii Bora Bank at an estimated price of Ksh1.4 billion (R190 million).
The deal is set to expand the Kenyatta family’s business empire, which spans across banking, dairy, real estate, hospitality and manufacturing sectors.
The Jamii Bora acquisition bid follows weeks after CBA announced a takeover of NIC Group, the commercial bank which is listed on the Nairobi Securities Exchange (NSE).
According to a local media outlet Business Daily, the combination of CBA, NIC and Jamii Bora will rank as Kenya’s third-largest banking entity after KCB and Equity.
The three combined financial services firms will have total assets of about Ksh457 billion (R62 billion), rivalling KCB and Equity, which have assets of Ksh684.1 billion (R93 billion) and Ksh560.3 billion (R76 billion) respectively, according to the Business Daily.
People familiar with the deal told Business Daily that 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.