Jamii Bora Bank has been renamed to Kingdom Bank Limited and a new chief executive officer appointed in major changes by Cooperative Bank of Kenya #ticker:COOP which has acquired a controlling stake worth Sh1 billion.
Co-op Bank on Tuesday morning unveiled Anthony Mburu as the new CEO of the rebranded outfit, in changes that also saw it name a new board.
Mr Mburu has been the director for credit management at Co-op Bank. He is a senior executive in the banking industry with over 25 years of experience and takes over from Tim Kabiru who has been heading Jamii Bora.
The changes come after Co-op Bank acquired a 90 percent stake in the small lender by injecting in Sh1 billion.
Kingdom Bank will now trade as a subsidiary of Co-op Bank, with its brand also donning the green colours that are synonymous with the Nairobi Securities Exchange–listed lender.
“Pursuant to Central Bank of Kenya approvals, the former Jamii Bora Bank has changed its name and will now operate as Kingdom Bank Limited,” said Co-op Bank.
Co-op Bank has also made changes to the board of the lender as it seeks to strengthen the operations of the acquired outfit.
“The transaction has now been completed and Co-op Bank appointed a new board as hereunder to drive the needed transformation agenda,” said the bank in a statement.
The board will be chaired by Margaret Karangatha with Co-op Bank managing director Gideon Muriuki being a member alongside Macloud Malonza and Julius Sitienei.
Co-op has been hinting at using the new subsidiary to deepen micro-small and medium-sized entities banking, microfinance, youth and women banking, asset finance and leasing.
“The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base and create a niche bank to offer specialised credit offerings,” said Mr Muriuki in a recent statement.
Unlike other top lenders such as KCB Group #ticker:KCB and Equity Group #ticker:EQTY, Co-op Bank has been concentrating more on the Kenyan market for growth through branch expansions, launch of new businesses and acquisition of stakes.
Other Co-op Bank Group subsidiaries include Co-optrust Investment Services Limited and Co-op Consultancy & Insurance Agency Limited, which it owns fully.
The lender also holds 60 percent stake in Kingdom Securities Limited, and 51 percent in Co-operative Bank of South Sudan.
Associate firms include CIC Insurance Group (24.7 percent) and Co-op Bank Fleet Africa Leasing Limited with a 25 percent stake.
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