Co-operative Bank Branch Along Kenyatta Avenue in Nairobi. Monday, October 21, 2019. The Co-operative Bank of Kenya on Wednesday, July 1, completed a move to expand its customer base after spending Ksh1 billion to acquire 90% of Jamii Bora Bank.
In a statement to newsrooms, the bank disclosed that the deal was sealed during an Extra-Ordinary General Meeting in which the stakeholders of Jamii Bora Bank approved the acquisition.
The approval paved the way for the payment of the Ksh1 Billion to acquire a new class of ordinary shares that gives the bank controlling interest in Jamii Bora with existing customers benefitting from Co-op’s wide range of services including industry-leading digital banking platforms.
With the acquisition , the Co-operative Bank is set to appoint a board that will manage the subsidiary. Jamii Bora Bank branded buildingThe Standard "Co-op Bank has been pleased to note that the shareholders of Jamii Bora Bank, have pursuant to an Extra-Ordinary General Meeting held on July 1, 2020, unanimously approved Co-op Bank’s offer to acquire 90% of the bank.
"This will be through the subscription of 224,153,154 new class of Ordinary Shares that would enable Co-op Bank to inject Ksh1 Billion and appoint a Board to run the business," read the statement in part.
Jamii Bora family joins a group of Co-operative Bank subsidiaries that include The Co-operative Bank of Kenya Limited, Co-optrust Investment Services Limited, Co-op Consultancy & Insurance Agency Limited, Kingdom Securities Limited and Co-operative Bank of South Sudan Limited.
The Co-operative Bank Group is one of the largest banks in the region with an asset base of over Ksh470 billion, predominantly owned by the over 15-million-member Kenya co-operative movement.
The bank also owns a 24.7% stake in CIC Insurance Group and a 25% stake in Co-op Bank Fleet Africa Leasing Limited.
Jamii Bora Bank, on the other hand, is a fully-fledged Commercial Bank, licensed and regulated by the Central Bank of Kenya, with over 444,000 customers in 17 branches and employs over 190 staff.
The Bank has a strategic niche in MSME banking, offering working capital and trade finance solutions.
"The strategic entry of Co-op Bank coming in as a 90% strategic owner is an “Inclusive Growth Model” that particularly safeguards the existing shareholders of Jamii Bora; in that, they will now share in the expected future Transformation gains/profitability growth."This acquisition will strengthen both institutions leveraging on the Co-operative Bank’s well-established Universal Banking model as well as our […]