Merger of Commercial Bank of Africa and NIC Group

Press Release – The Central Bank of Kenya (CBK) announces the merger of Commercial Bank of Africa Limited (CBA) and NIC Group PLC (NIC) effective September 30, 2019. This follows CBK’s approval on August 27, 2019 under Section 13(4) of the Banking Act, and approval by the Cabinet Secretary, National Treasury on September 20, 2019, for the merger under Section 9 of the Banking Act.

Following the merger, effective October 1, 2019, all subsidiaries will operate under a Non-Operating Holding Company, NCBA Group PLC. The banking business in Kenya of the merged institutions will operate as NCBA Bank Kenya PLC. All account holders, depositors, employees, creditors and other stakeholders of the existing institutions should deal with NCBA Bank Kenya PLC and NCBA Group PLC.

CBA has been operational for over 50 years and is wholly owned by a group of institutional and individual investors with extensive business interests in Kenya and East Africa. It has invested in both banking and non-banking subsidiaries in Kenya, Rwanda, Tanzania and Uganda. As at June 30, 2019, CBA had a market share of 5.6 percent.

NIC was established in 1959 as an asset finance company and obtained a commercial banking license from CBK in 1995. It merged with African Mercantile Bank Limited in 1997. It has a presence in Kenya, Tanzania and Uganda. As at June 30, 2019, NIC had a market share of 4.3 percent.

The merger will strengthen both institutions leveraging on their combined market share of 9.9 percent and customer base of over 40 million in four East African countries.