The Central Bank of Kenya (CBK) has granted permission for the proposed merger of NIC Group (NIC) and Commercial Bank of Africa (CBA).

After the merger, which will be effective 30 September this year, all subsidiaries will operate under a non-operating holding company, NCBA Group.

The merged institutions will operate under the brand name NCBA Bank Kenya.

The merger of both banks will create the country’s third-largest bank by assets.

According to the country’s central bank, all account holders, creditors, depositors, employees, and other stakeholders of the existing firms will now work with NCBA Bank Kenya and NCBA Group.

In a statement, the CBK said: “The merger will strengthen both institutions leveraging their combined market share of 9.9% and customer base of over 40 million in four East African countries.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

CBA Group managing director Isaac Awuondo will act as the chairman of NCBA Bank Kenya.

Awuondo stated: “Soon we shall be announcing the brand which is a reflection of both banks’ values, borrowing from the best of both and building new strengths to deliver better banking experience.”

The merger was first announced by the respective boards in December last year. The deal secured shareholders’ nod in April this year.

As part of the next phase of the merger, the parties will combine their businesses in Uganda Tanzania, and Rwanda, after securing regulatory approvals in these countries.