KCB Injects Sh 5B into National Bank to Shore up Capital

The Kenya Commercial Bank has pumped 5 billion into its newly acquired National Bank in a bid to meet the capital sufficiency threshold of the division and bolster its financial resources.

In a statement the NBK’s secretary said,” The board of National Bank of Kenya Limited (NBK) is pleased to announce that KCB Group PLC (KCB) has injected Kenya Shillings Five Billion into NBK.

Earlier, KCB had estimated a capital injection of up to Sh7.5 billion, with the actual figure attached to the success level of NBK bad debt recovery.

KCB, the largest local bank by numbers and asset in East Africa, acquired NBK in 2019 amid claims from legal official demanding for a better deal. The bank was also in breach of other capital ratios regulating its ability to lend to customers and take deposits.

NBK will operate as a subsidiary of KCB for two years after which it will be incorporated into Kenya Commercial Bank limited.

KCB also has subsidiary banks in Rwanda, Uganda, Tanzania, Burundi and South Sudan.