In a recent announcement, KCB Group CEO Paul Russo shared exciting news for Kenya Commercial Bank (KCB) and National Bank of Kenya (NBK) customers.
Starting in 2024, both sets of customers will have the convenience of accessing services not only in their respective branches but also in the branches of the other bank.
This strategic move is a direct outcome of KCB’s acquisition of NBK in 2019, with the goal of optimizing its operations by eliminating overlaps.
Russo, speaking to NTV, highlighted that the integration would be in full swing by February of the coming year.
“By January-February, KCB customers should be able to be served in an NBK branch and NBK customers in a KCB branch.
That gives you an opportunity to optimize because you can then remove overlaps,” Russo explained.
He emphasized the importance of technology capabilities in this optimization process.
For instance, the integration allows for a critical examination of the need for running multiple branches in the same location, as Russo pointed out, “One would ask, why are you running two branches in Wajir, but you need a technology capability.
That is the direction you want to take.”
The acquisition deal, which took place in April 2019, involved KCB acquiring 100% of NBK’s shareholding through a share swap.
This swap entailed 10 ordinary shares of NBK for every 1 ordinary share of KCB.
The Central Bank of Kenya (CBK) approved this significant move in September 2019, solidifying the merger as Kenya’s largest bank by assets and market share.
It’s worth noting that KCB Group extends beyond Kenya, with regional units in Uganda, Tanzania, Rwanda, Burundi, Ethiopia, and South Sudan.
In addition to its banking services, KCB Group owns non-banking subsidiaries such as KCB Bancassurance Intermediary, KCB Capital, and KCB Foundation, making it a key player in the financial landscape across East Africa.
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