The Central Bank of Kenya (CBK) announced the acquisition of 90 percent of the shareholding of Jamii Bora Bank (JBB) by Co-operative Bank of Kenya (Co-op Bank) effective August 21, 2020.
This follows CBK’s approval on August 3, 2020 under Section 13 (4) of the Banking Act, and approval by the Cabinet Secretary for the National Treasury and Planning on August 4, 2020 pursuant to Section 9 of the Banking Act.
Co-op Bank commenced operations in 1965 and is owned predominantly by the 15 million member Kenyan co-operative movement. It was listed on the Nairobi Securities Exchange in 2008. It was ranked 3 out of 39 banks in terms of market share as at June 30, 2020, with a market share of 9.96 percent and 159 branches in Kenya and South Sudan.
JBB was established in 2010 after the acquisition by City Finance Bank Limited of the business of Jamii Bora Kenya Limited, a Micro Finance Institution. The bank was ranked 38 out of 39 banks in terms of market share as at June 30, 2020, with a market share of 0.09 percent and 17 branches across the country.
CBK welcomes this transaction which will diversify the business models of the two institutions, benefitting Co-op Bank’s diverse shareholders and enhancing the resilience of the Kenyan banking sector. So far, the measures taken by CBK in the recent past to strengthen the banking sector, including review of business models and consolidation, have been beneficial in enabling the sector ride through the pandemic period while supporting their customers and the economy.