Kenya’s second-leading bank has acquired the Jamii Bora bank limited.
Cooperative bank acquired 90 percent of the shares after the Jamii Bora bank shareholders gave the greenlight in an Extra Ordinary General Meeting held yesterday.
Cooperative bank boss Gideon Muriuki in a statement said this move will be through the subscription of 224,153,154 new class of ordinary shares that would enable Co-op Bank inject Sh1 billion and appoint a board to run the business.
Co-opt bank has an base of Sh470 billion owned by over 15 million members and it has made significant innovations such as the recent Instant debit card Launched in Harambee Sacco.
The Instant debit card allows all Members of the Sacco that banks with Co-op to be able to instantly receive the visa Debit Card and immediately start transacting it in ATMs, Co-op Bank agents or shop at visa branded outlets and online stores.
Jamii Bora bank ha 440, 000 customers, operates 17 branches and employees over 190 staff.
“The next steps will now be the regulatory approvals notably from Central Bank of Kenya, Capital Markets Authority and the Competition Authority of Kenya,” Muriuki stated.
Adding; “The acquisition will strengthen both institutions leveraging on the cooperative bank’s well established universal banking models as well our successful business tranformation agenda/turnaround riding on the bedrock of the 15 million member cooperative movement and Ksh 470 billion balance sheet”.
As at December 31, 2019 Co-opt bank made a profit of Sh20.7 billion and on April this year paid a divided of Sh5.9 billion to shareholders.
Its related companies include Co-optrust Investment services Limited, Co-op Consultancy & Insurance Agency Limited, Kingdom Securities Limited and Co-operative Bank of South Sudan Limited.
Its associates are CIC Insurance Group and Co-op Bank Fleet Africa Leasing Limited.