Connect with us

Hi, what are you looking for?


Barclays Kenya to sell Custody business

NAIROBI, Kenya, May 28 – Barclays Bank Kenya shareholders have approved the sale of the bank’s Custody business to Standard Chartered Bank.

The deal, which is still subject to regulatory approval, is expected to rake in Sh3.5 billion to be re-invested in the bank’s business.

Speaking upon approval of the deal at the bank’s annual general meeting, Managing Director Adan Mohammed said the move was likely to improve shareholder earnings.

“It is in the best interest of shareholders that we disperse of the custody business because we are getting good value for it,” Mr Mohammed said.
The Barclays Custody business deals in settlement of securities trades, safekeeping and registration of securities.

It also deals in custodian business services like income and interest collection, corporate actions management, proxy voting services, allied banking and foreign exchange requirements among others.

Barclays Bank PLC agreed to sell its custody business in Africa to Standard Chartered back in April.

The Barclays African custody business had gross assets of £1.9 million and assets under custody of £3,862 million as at December 31, 2009.

Mr Mohammed said the sale of the custody is expected to be complete in October giving the bank additional capital to upgrade its core banking platform.

“We have had one for a long time and we are in the process of upgrading it. We hope it will up by the third quarter of this year,” he said.

Advertisement. Scroll to continue reading.

Elsewhere on Friday, Standard Chartered Bank shareholders also approved plans for a Sh2.5 billion rights issue which Chief Executive Richard Etemesi said would be used in the acquisition of the custody business.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...