Kenya Commercial Bank Limited (owner of KCB Kenya) has been approved by the Central Bank of Kenya as a non-operating holding company.
This is after KCB Limited obtained all regulatory approvals on the transfer of the Banking business, certain business, and certain liabilities of the company to its fully owned subsidiary KCB Bank Kenya Limited.
"Following an approval of the CBK, the company (KCB Limited) is now fully registered as a non-operating holding company with the CBK from the completion date," read a statement signed by KCB Limited Company Secretary Joseph Kania.
The transfer effected on December 31(which was the completion date) followed a shareholders’ approval on the formation of KCB Limited that will own the bank as well as all the subsidiaries being operated regionally.
This is in accordance to a recent provision by CBK that non-financial companies can own more than 25 per cent of a bank's capital: "We are now pleased to announce that KCB Bank Kenya Limited began operations as a banking institution licensed by the CBK with effect from December 31."
Earlier, as indicated in the provisions of the agreement dated April 21 2015 in the completion date was changed from June 30 to December 31 on agreement of the parties to the Transfer Agreement through their respective Boards of Directors.
Henceforth, all KCB regional banking institutions across East Africa (Uganda, Rwanda, South Sudan and Burundi) will be managed by the KCB Bank Kenya Limited (the group).
The inclusion will also incorporate KCB bancassurance, its insurance agency as well as its investment arm of KCB Capital Limited.
This move is said to increase trust of investors, shareholders and customers as it will spread risks to have them cushioned apart from increasing its access to debt and equity capital.
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