Treasury CS issues statement on KCB/ NBK banks merger; MPs vote against the merger.
The Acting National Treasury Cabinet Secrerary Amb Ukur Yatani has issued a statement on the proposed merger of the Kenya Commercial Bank ( KCB) with the National Bank of Kenya (NBK).
According to Yatani, Since the Merger Process started,consultations have been ongoing with various stakeholders including Parliament. He says the Government is confident that these consultation will yield Positive results for both KCB and NBK in order to support the bigger Government Agenda of Strengthening the Financial sector in the Country.
Here is the presser by Amb. Ukur Yatani;
‘PRESS STATEMENT BY THE ACTING CABINET SECRETARY/NATIONAL
TREASURY & PLANNING ON THE STATUS OF THE KENYA COMMERCIAL
BANK (KCB)/NATIONAL BANK OF KENYA (NBK) MERGER TRANSACTION
Following the media reports on the proposed merger of KCB/NBK I wish to make the following clarifications:
1). The GOK (Government of Kenya) through the National Treasury and the NSSF are principal shareholders of KCB and National Bank. The proposed merger of the
two banks was intended to consolidate the Government interest.
2). The merger process started in May 2019 when KCB gave an intention to merge with NBK, through a process governed by Capital Markets Authority that is applicable to all listed public companies.
3). Both KCB and National Bank have already made public
pronouncement on the proposal to the merger and have engaged the shareholders of NBK to swap their shares with KCB shares.
4). GOK as a shareholder has been engaged in this process as any other
shareholder.
5). The Government in its strategic role, recognized the need for strong and stable banks in support of its fiscal responsibilities.
Since the merger process started, consultations have been ongoing with various stakeholders including Parliament. The Government is confident that these consultations will yield positive results for both KCB and National Bank in order to support the bigger government agenda of
strengthening the financial sector in Kenya.
Finally, I also wish to state that the Government of Kenya as the principle shareholder in Consolidated Bank of Kenya, will provide the necessary support to ensure that the Medium Term Note issued by the Bank is paid.
We are aware and support the request by Consolidated Bank for an extension of 3 months to pay the Note Holders.’
This statement comes even after the Parliament Committee on Finance and National Planning voted against the planned take over of NBK by KCB Group. According to the Legislators, KCB’s offer under values the State owned bank; NBK. KCB values the bank at KES 6 Billion.
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