Customers of Kenya Commercial Bank (KCB) will be able to get services at National Bank of Kenya (NBK) branches beginning next year, KCB Group CEO Paul Russo announced on Monday.
According to Russo, the lenders are attempting to eliminate operational overlaps as a result of KCB’s acquisition of NBK in 2019.
He stated that the change would go into effect in February of next year.
“January-February, KCB customers should be able to be served in an NBK branch and NBK customers in a KCB branch. That gives you an opportunity to optimize because you can then remove overlaps,” Russo said.
“One would ask, why are you running two branches in Wajir, but you need a technology capability. That is the direction you want to take.”
In April 2019, KCB Group made an offer to acquire 100% of NBK shareholding through a share swap of 10 NBK ordinary shares for every 1 KCB ordinary share.
The Central Bank of Kenya (CBK) approved the acquisition in September 2019, making the merger Kenya’s largest bank by assets and market share.
KCB has regional offices in Uganda, Tanzania, Rwanda, Burundi, Ethiopia, and South Sudan in addition to Kenya.
It also owns non-banking subsidiaries such as KCB Bancassurance Intermediary, KCB Capital, and KCB Foundation.
