KCB Group Formally Sets up a Non-Operating Holding Company


KCB Group has obtained all regulatory approvals to transfer its banking business to its wholly-owned subsidiary, KCB Bank Kenya Limited, a new entity created under a new holding company structure.

Following approvals received from the Central Bank of Kenya, the Capital Markets Authority (CMA) and the National Treasury, Kenya Commercial Bank Limited is now registered as a non-operating holding company and newly incorporated KCB Bank Kenya Limited started operations as a licensed banking institution with effect from January 1, 2016.

Kenya Commercial Bank Limited will now oversee KCB Kenya and KCB’s regional units in Uganda, Tanzania, Rwanda, Burundi, Ethiopia and South Sudan. The vehicle will also own KCB Insurance Agency, KCB Capital, KCB Foundation and all associate companies.

KCB projects that the new structure will increase efficiency in access to and allocation of capital while enabling the equity markets to place appropriate value on the Group’s business separate from the current banking operations to be undertaken by KCB Bank Kenya Limited. The reorganization—which will effectively separate the banking businesses from other incidental business entities— will however not result in any change in the ownership structure of Kenya Commercial Bank Limited.

 “We are confident as a board that the re-organization will result in operational efficiencies and better financial performance for the Bank. The new units will be able to operate independently while being supervised by the mother company to ensure that the activities are run according to the laid down practices and move towards boosting the bank’s financial performance remarkably,” said KCB Group Chairman Ngeny Biwott.

Mr Biwott said that to enable KCB to achieve its Pan-African  vision,  and sustain  growth in  earnings and  assets, the Group requires  a structure that will allow it to have the easiest path to expand without compromising any of its existing businesses.

“The structure we are now forming will go a long way in enhancing the Group's capacity to access unrestricted capital and also enable us to invest in new ventures that are outside banking regulations, achieve operational and strategic autonomy for the Group's operating entities and enhance corporate governance across the Group and oversight in management of subsidiaries”, he said.

Sign up for our Newsletter

Stay informed with what we have been upto!

NSE

Personal
Accounts Cards Loans Investments
Fixed Deposits Call Deposits Treasury Bill & Bonds Dual Currency Deposits Short Term Credit Loans
Forex Diaspora Banking Ways to Bank Search
Business About Us
Who We Are
Our Philosophy Our History Governance Our Standards Awards Ethics
News & Events Sponsorships
KCB Football Club
Careers Tenders Search Vacancies
Contact Us Internet Banking Witty Banker
Loading