Stage set for government banks' merger as parastatal reforms begin

The stage is set for merger of State-owned commercial banks into a mega lender in the ongoing parastatal reforms. The Government is also merging about forty parastatals into about nine agencies, that could see thousands of jobs rendered redundant.

This could see National Bank of Kenya, where the Government holds 22.5 per cent stake and National Social Security Fund (NSSF) — a State agency — with a 48 per cent stake, merged with Consolidated Bank of Kenya and Development Bank of Kenya. Consolidated Bank is wholly owned by the Government while in Development Bank of Kenya, the State holds 89.3 per cent stake through the Industrial and Commercial Development Corporation (ICDC), with TransCentury owning the remaining 10.7 per cent.