KCB Group provided an expression of interest to the Treasury
to acquire a controlling stake in National Bank of
“Further details will, however, be provided in due course in line with the guiding regulatory requirements,” she said.
Shares of National Bank, or NBK, jumped 10 percent, the most
on a closing basis since July 2015, to 7.7 shillings by 1:02 p.m. in
Read also: State-owned bank could be in pipeline
The East African nation’s largest banks all posted a drop in first-quarter earnings as a government-imposed limit on commercial lending rates reduced what they can charge for loans.
The ceiling on interest rates 400 basis points above the central bank’s benchmark rate is forcing lenders to compete more aggressively on pricing for loans and impairing their ability to provide loans to riskier clients.
KCB had approached National Treasury and National Social Security Fund, NBK’s largest investors, expressing interest in buying the lender, Nairobi-based Daily Nation newspaper reported on Saturday, citing people familiar with the matter. A spokesman at NBK didn’t immediately respond to emailed questions.