NAIROBI, Kenya, Mar 19 – Advocate of the High Court Francis Wanjiku has called on the National Treasury to divest its 19 percent stake in KCB Group Plc, a move that could generate over Sh24 billion in value.
In a letter to Treasury Cabinet Secretary John Mbadi, Wanjiku argued that the sale would provide immediate financial gains while boosting efficiency and growth in Kenya’s banking sector.
“KCB Group has demonstrated exceptional financial performance, making this the right time to unlock fiscal value while enhancing the bank’s agility,” he wrote.
With a market capitalization of Sh133.7 billion as of December 31, 2024, and a share price of Sh41.60, KCB has shown solid growth.
Wanjiku estimates that a well-timed and competitive sale of the Treasury’s stake could yield even more than Sh24 billion.
Wanjiku outlined several advantages of the proposed sale, including an immediate fiscal boost, enhanced efficiency and investor confidence.
“The government’s role in stabilizing KCB has been vital, but the bank’s maturity and the sector’s resilience no longer necessitate public ownership,” Wanjiku stated.
Wanjiku recommended a structured divestiture via a public offering on the Nairobi Securities Exchange (NSE) to ensure transparency and broad investor participation.
He also urged the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) to oversee the process, ensuring market stability while channeling proceeds into high-impact public investments.
