Coop Jamii Bora Acquisition: The Co-operative Bank is set to acquire Jamii Bora Bank. This has been announced by the Central Bank of Kenya.
In a statement released on Wednesday, the CBK said that that the move will diversify the business models of the two banks.
“CBK welcomes the transaction that will diversify the business models of the two institutions and enhance the stability of the Kenyan banking sector,” the CBK press release said.
Co-op Bank will acquire one hundred per cent of the Jamii Bora. The Co-op Bank was started in 1965 and is predominantly owned by 15 million members of the Kenyan co-operative movement. It was listed on the Nairobi Securities Exchange in 2008. It was ranked 4th out of 39 banks in terms of market share as at December 31, 2019 with a market share of 9.63 per cent. The bank has a 159 branches across Kenya and South Sudan.
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On the other hand, Jamii Bora was established in 2010 after the acquisition by City Finance Bank Limited of the business of Jamii Bora Kenya Limited, a micro finance institution. It was ranked 38 out of 39 banks in terms of market share as at December 31, 2019. The bank had a market share of 0.12 per cent with 17 branches across the county. Coop Jamii Bora Acquisition.