Co-operative bank takes to over Jamii bora bank -CBK

Jamii Bora bank branch

After troubles in the Jamii bora bank, Co-operative bank comes to their rescue after its offered to buy all the bank assets from June 2020.


The Co-operative Bank of Kenya (Co-op) plans to acquire the entire business of Jamii Bora Bank Limited, making it the latest tier one bank to acquire smaller lenders that are struggling.


The Central Bank is Kenya (CBK), which is the banking sector regulator, welcomed the move, saying it will enhance the stability of the Kenyan banking sector.


“CBK welcomes the transaction which will diversify the business models of the two institutions and enhance the stability of the Kenyan banking sector,” the regulator said in a statement on Wednesday.


But the deal is still subject to regulatory approvals.
The co-operative bank started its operations in 1965 and is predominantly owned by the Kenyan co-operative movement.


Jamii Bora, on the other hand, was established in 2010 after 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 of December 31, 2019. It has a market share of 0.12 per cent with 17 branches across the country.