Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Joshua Oigara, KCB CEO /File


KCB forms holding company, unbundles operating entities

The approvals are from the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA) and the National Treasury/FILE

The approvals are from the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA) and the National Treasury/FILE

NAIROBI, Kenya, Jan 4 – Kenya Commercial Bank (KCB) Group has obtained all regulatory approvals to transfer its banking business, to its wholly-owned subsidiary, KCB Bank Kenya Limited, a new entity created under a new holding company structure.

In the new structure Kenya Commercial Bank Limited is now registered as a non-operating holding company while the newly incorporated KCB Bank Kenya Limited has started operations as a licensed banking institution with effect from January 1, 2016.

The approvals are from the Central Bank of Kenya (CBK), the Capital Markets Authority (CMA) and the National Treasury.

“We 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,” KCB Group Chairman Ngeny Biwott said.

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.

KCB projects 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 to be undertaken by KCB Bank Kenya Limited.

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 added 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.

“The structure we are now forming will go a long way in enhancing the Group’s capacity to access unrestricted capital and also enable us to invest in new ventures that are outside banking regulations, achieve operational and strategic autonomy for the Group’s operating entities and enhance corporate governance across the Group and oversight in management of subsidiaries,” he said.

Advertisement. Scroll to continue reading.
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...