KCB Appoints New National Bank of Kenya Boss After Full Take Over
Kenya Commercial Bank (KCB) has taken control of the National Bank of Kenya after a nod by Kenya’s monetary authority, the Central Bank of Kenya.
This is after acquiring necessary regulatory approvals that have been in process in the last year. The transaction is subject to regulatory approvals pursuant to regulation 4(1) of the Capital Markets (Take-overs and Mergers) Regulations, 2002.
Subsequently, KCB has picked Paul Russo as the designate Managing Director of NBK for the transitional 2-year period of its integration into KCB, subject to fit and proper approval by the CBK . Russo who is the KCB Group Director of regional business will lead the transition team that will report to the KCB Group Chief Executive Officer and Managing Director Joshua Oigara.
Paul Russo holds two bachelor degrees in business management and administration and a Masters degree in strategic management. He comes with substantial experience in banking, as the new appointee previously served as Barclay’s head of human resources and KCB Group’s Human Resources Director between mid-2014 and December 2018.
The developments come a day after the CBK said on Monday that it had no objection to KCB Group planned acquisition of 100 % stake in NBK in an offer to shareholders which closed on Friday, August 30, 2019. The CBK approval followed the one by the Competition Authority of Kenya which last week granted approval to KCB finalizing the deal.
“We are confident that we shall conclude this process shortly following the receipt of the necessary approvals. We have received a good indication from NBK shareholders and we shall announce the official results within the legally stipulated timelines so as to get into the next steps of the transaction,” said Mr. Oigara adding that KCB Group has embarked on verification of the returns by the shareholders.
The acquisition is part of KCB’s strategy to expand across the banking space with the hopes that such acquisitions will buttress the group’s position as the largest bank in the region. It is the tenth acquisition of it’s sort in the Kenyan banking history.
It is anticipated that upon acquisition, NBK will continue to operate as a subsidiary of KCB Group for a maximum period of two years. “We have set a target to fully integrate NBK into KCB in 24 months from acquisition. During that period, we will be taking a number of integration decisions including how to best structure NBK in order to more excellently deliver value to our customers,” said Mr. Oigara.