NBK in asset sale to raise Sh1.2b for restructuring

National Bank of Kenya CEO Munir Ahmed

State-owned National Bank of Kenya (NBK) has said it will sell off a number of assets among them properties around the country to raise some Sh1.2 billion needed to drive its restructuring agenda, grow its loan book and profitability as well as push up customer numbers.

The move comes amid reports that National Treasury is back-pedalling on giving a nod for the bank’s Sh5 billion rights issue. While the proposal appeared in the draft budget, there was no mention of NBK when the actual Budget was read before parliament last week. NBK Chief Executive Munir Ahmed Monday said he has his focus among the top five most profitable banks in 2017 - the reason behind a push to liquidate 12 of the bank’s properties to finance its next phase of growth. The bank’s shareholders had approved the planned rights issue during the lender’s 2013 annual general meeting, However, Treasury is still mute as well as National Social Security Fund, the two largest shareholders at NBK.