Govt insists on sale of National Bank to KCB despite Parliament opposition

The National Treasury has approved the KCB Group planned takeover of rival National Bank, despite opposition by the National Assembly.

In a statement to newsrooms, acting Treasury Cabinet Secretary Ukur Yatani said the government had given the deal a clean bill of health.

Yatani noted that the move was in the best interest of the government to consolidate its shares in the two lenders.

A Nairobi court has since thrown out a petition that had wanted the deal stopped.

On Wednesday, the National Assembly’s Finance and Planning Committee had recommended that Treasury abandons the deal and instead find ways of injecting fresh capital into National Bank.

The legislators also claimed that KCB’s offer was below the bank’s value.

KCB, on the other hand, said in a statement it was available to discuss their offer to National Bank with parliament.

KCB further said it received approvals from its shareholders to pursue its rival as part of its growth strategy.

The Ksh.5.6 billion offer to National Bank involve a 1-10 share swap in favour of KCB at an average price of 3.88 cents.

Shareholders of National Bank have until end of August to consider the offer.