National bank to be sold to Kenya Commercial Bank as it brinks on closure over low sales. KCB has taken over Chase bank, Keep bank and now takes over National bank Kenya. (NBK)
KCB takes over National bank. PHOTO | NMG
The National Treasury has approved the KCB Group planned takeover of rival National Bank, despite opposition by the National Assembly.
In a statement to newsrooms, acting Treasury Cabinet Secretary Ukur Yatani said the government had given the deal a clean bill of health.
The Ksh.5.6 billion offer to National Bank involve a 1-10 share swap in favor of KCB at an average price of 3.88 cents.
KCB has been roaring on rival banks as it takes over the other commercials bank in Kenya. Last year the bank was in talks to acquire Post bank as well.
Post bank, K-Rep bank and National bank are government-owned banks but are not meant for commercial activities. Only KCB is allowed to do commercial activities as a government-owned, banking government business.