Co-operative Bank of Kenya has unveiled plans to restructure its operations through a corporate reorganisation that would see the lender transition into a non-operating holding company structure.
In a public notice issued on April 22, the bank said the proposal remains subject to shareholder approval and clearance from relevant regulators.
The restructuring plan will establish a group framework headed by a Non-Operating Holding Company (NOHC), in accordance with provisions under Kenya’s Banking Act and prudential guidelines issued by the Central Bank of Kenya.
If approved, the current listed entity will become a holding company under the name Co-op Bank Group PLC, while a newly created subsidiary, Co-op Bank Kenya Limited, will take over the institution’s core banking operations.
The bank said the move is intended to streamline operations, improve efficiency, and strengthen the group’s ability to pursue long-term growth opportunities and expansion plans.
The transaction will still require approvals from several regulatory bodies, including the Central Bank, the Capital Markets Authority, and the Registrar of Companies, alongside consent from shareholders.
Investors were advised to remain cautious when trading the bank’s shares until the restructuring process is finalised.
The proposal is expected to be presented at the lender’s upcoming Annual General Meeting, where shareholders will debate and vote on the planned changes.
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The announcement comes as the bank reports a record financial performance for the year ending December 2025.
Net profit climbed to KSh 29.75 billion, marking a 16.9% increase from the KSh 25.46 billion posted in 2024. Profit before tax also rose sharply to KSh 40.3 billion from KSh 34.8 billion, representing the strongest earnings performance in the bank’s history.
The lender attributed the improved results to stronger net interest income, expansion of its loan portfolio, rising customer deposits, and continued investment in digital banking services.
Net interest income increased by nearly 22% to KSh 62.85 billion, helping lift total operating income by 13.93% to KSh 91.89 billion.
Meanwhile, operating costs grew at a slower pace of 11.35%, allowing the bank to maintain efficiency gains, with its cost-to-income ratio standing at 46.3%.
