President Uhuru and His Mother in a Bank Dealing that Will Change the Banking Industry

The merger between CBA and NIC bank will count among its top owners some of Kenya’s most renowned billionaire investors and political figures, shareholder information on the two lenders has revealed.

Records from the Registrar of Companies have revealed the underlying ownership of the privately-held CBA bank, whose investors will control a combined 53 percent stake in the merged outfit that is set to start trading on the Nairobi Securities Exchange later this year with a market capitalization of more than Sh65 billion.

President Uhuru Kenyatta; his brother Muhoho and former First Lady Mama Ngina Kenyatta will together directly hold stakes worth a combined Sh8.5 billion.

The Phillip Ndegwa family, which founded NIC Bank, will own an equivalent of Sh8.6 billion in the combined entity while billionaire businessman Naushad Merali will hold a stake worth about Sh1.9 billion.

The Kenyattas will control about 13.2 percent of the bank, a level of ownership that nearly matches the 13.25 percent equity that the Ndegwa family will also take in the merged entity.

The Kenyattas currently hold a 24.92 percent stake in CBA while the Ndegwas have a 25 percent interest in NIC. Mr Merali will end up with a 2.9 percent equity based on his present direct ownership of a 5.6 percent stake in CBA.

CBA, while announcing the merger plans, disclosed that it had a total of 34 shareholders. However, it did not name them. Shareholders of CBA will get the larger stake in the combined business based on the relatively bigger size of the private bank and the value it brings to the table, including a larger asset base and millions of M-Shwari customers.


Business Daily

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