National Bank of Kenya (NBK), also known as National Bank, is a

commercial bank A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with cor ...

Kenya ) , national_anthem = "Ee Mungu Nguvu Yetu"() , image_map = , map_caption = , image_map2 = , capital = Nairobi , coordinates = , largest_city = Nairobi , ...

, the largest economy in the

East African Community The East African Community (EAC) is an intergovernmental organisation composed of seven countries in the Great Lakes region of East Africa: the Democratic Republic of the Congo, the United Republic of Tanzania, the Republics of Kenya, Burundi, ...

. It is licensed by the Central Bank of Kenya, the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...

, and national banking regulator. Effective September 2019, the bank is a wholly owned subsidiary of the

Kenya Commercial Bank Group KCB Group Limited, also known as the KCB Group, is a financial services holding company based in the African Great Lakes region. The Group's headquarters are in Nairobi, Kenya, with its subsidiaries being KCB Bank Kenya Limited, KCB Bank Burundi Li ...

Overview

NBK is a large financial services provider in Kenya, serving individuals, small-to-medium companies and businesses (SMEs) and large corporations. Headquartered in

Nairobi Nairobi ( ) is the capital and largest city of Kenya. The name is derived from the Maasai phrase ''Enkare Nairobi'', which translates to "place of cool waters", a reference to the Nairobi River which flows through the city. The city proper ha ...

, the bank owns one subsidiary company: ''NatBank Trustee and Investment Services Limited''. , National Bank of Kenya's asset base was valued at approximately US$1.122 billion (KES:115.143 billion), with shareholders' equity valued at about US$67.6 million (KES:6.936 billion). Following the acquisition of the shares of NBK by KCB Group in September 2019, the shares of NBK were de-listed from the Nairobi Securities Exchange on 16 September 2019.

History

The bank was established in 1968 as a 100 percent government-owned financial institution. In 1994, the

Kenyan Government , image = , caption = Coat of arms of Kenya , date = 1963 , jurisdiction = Republic of Kenya , url = http://www.mygov.go.ke/ , legislature = Parliament of Kenya , meeting_place = ...

reduced its shareholding to 68 percent by selling 32 percent shareholding to the public. The government further divested from NBK over the years, until its present shareholding of 22.5 percent, as of April 2019. Following 12 years of poor financial performance, the bank became profitable again in 2010, paying out an annual dividend ever since. In April 2019,

KCB Bank Kenya Limited KCB Bank Kenya Limited is a financial services provider headquartered in Nairobi, Kenya. It is licensed as a commercial bank, by the Central Bank of Kenya, the national banking regulator. The bank has also been running Agency banking mode ...

, the largest commercial bank in the country by assets, announced its intention to acquire 100 percent of the assets and liabilities of National Bank of Kenya, pending shareholder and regulatory approvals. That acquisition was concluded on 16 September 2019.

Subsidiaries

The bank owns the following subsidiary companies in which it has 100% shareholding
Natbank Trustee
and Investment Services Limited:

, # Kenya National Capital Corporation Limited:

,
NBK Insurance Agency Limited

Ownership

, the

stock In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

of National Bank of Kenya is owned by the

, a large financial conglomerate, with subsidiaries in seven Eastern African countries and total assets of over $7.013 billion, as of October 2019. At the time of acquisition of NBK, KCB Group stated that it intended to run NBK as a stand-alone subsidiary, for a period of at least two years, after which NBK would be integrated with

Governance

In October 2019, KCB Group appointed a new board of directors for its subsidiary National Bank of Kenya. The following are the board members: * John Nyerere: Chairman * Paul Russo: Managing Director * Joshua Oigara: KCB Group CEO & Managing Director * Julius Karangi * Stanley Kamau * Linnet Mirehane * Jones Makau Nzomo

References

External links

*
Central Bank of Kenya website

{{Banking in Kenya Banks of Kenya KCB Group Companies based in Nairobi Kenyan companies established in 1968 Banks established in 1968 1968 establishments in Kenya