NAIROBI, Kenya, Aug 9- The Central Bank of Kenya has given Co-operative Bank of Kenya the green light to acquire Jamii Bora Bank.
The regulator in a statement said that the 90 percent acquisition of the bank should be completed by end of this month.
“CBK announces the acquisition of 90 percent of shareholding of the Jamii Bora Bank by Co-op Bank effective August 21, 2020 following further approvals by among them the Jamii Bora shareholders and the National Treasury,” CBK said.
Last month, Jamii Bora Bank shareholders y backed the proposal in that allowed Co-op Bank to acquire a 90 per cent stake and rights to appoint a new board to run the bank.
The transaction has been reached where Co-Op Bank will acquire 224.2 million ordinary shares in Jamii Bora Bank in exchange for a Sh1 billion capital injection.
At the same time, the bank will also be seeking to tap on Jamii Bora’s network which has 444,000 customers and 17 branches across the country.