Co-Op Bank Set to Acquire Jamii Bora Bank, Joins Other Big Lenders Bid

Co-operative Bank of Kenya has announced plans to acquire the Jamii Bora Bank, the second-smallest by market share, highlighting the current buyouts of struggling financiers.

If the acquisition is approved by both shareholders and regulatory Co-Op Bank, the fourth-largest lenders with Sh450 billion in assets, it will acquire 100 percent shareholding of Jamii Bora Bank which has an asset base of Ksh12.5 billion controlling 0.12 percent of the market.

The transaction is set to upsurge Co-op Bank’s assets to Sh462.5 billion.

The Jamii Bora acquisition is set to increase ($4.62 billion) an amount that analysts at AIB predict it may not have a major impact on Co-op Bank’s books.

“We don’t think the acquisition will add much to Co-op’s balance sheet. Jamii Bora’s market share stands at 0.21 percent and this is unlikely to have a material impact on Co-op,” said AIB Capital Ltd in a research note.

Co-op Bank, which was listed on the NSE in 2008 with has a market share of 9.63 percent and 159 branches in Kenya and South Sudan- joins the largest country’s lender- KCB Group which last year acquired National Bank of Kenya and of partially taking over assets of the collapsed Chase and Imperial Banks.

Similarly,  Equity Bank — the second-biggest lender by assets — is in the course of taking over four banks in Rwanda, Zambia, Mozambique and Tanzania from London-listed investment firm, Atlas Mara.