An NBK banking hall. [Source/Callar] The Kenya Commercial Bank (KCB) Group has moved in to revamp the ailing National Bank of Kenya, months after acquiring it officially.
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As a result, KCB has announced pumping Sh5 billion into NBK, which it says is aimed at helping the bank bolster its financial resources.
Similarly, the move is aimed at enabling the NBK comply with capital adequacy requirements.
"In addition to enabling NBK to comply with capital adequacy requirements, the injection bolsters NBK’s financial resources,” it said in a statement on Thursday .
KCB completed the process of acquiring NBK in September last year, with the anticipation being that the bank will continue operating as a subsidiary of KCB for 2 years.
NBK will for the two years be under the leadership of KCB Group Director for Regional Businesses Paul Russo, who will serve as the NBK Managing Director for the time.
Initially, KCB intended to inject Sh7.5 billion into NBK, which was anticipated to be enough to raise the bank from its debts, a decision that appears to have been revised.
KCB has also been linked with a possible acquisition of the Imperial Bank which has also been limping and has been under receivership once it completes integrating NBK into its operations.