KCB names designate NBK boss after buyout approval

KCB Group has tapped it’s Group Director for Regional Businesses, Paul Russo, as the designate managing director of National Bank of Kenya (NBK) for a two-year period of its integration into KCB, subject to approval by the Central Bank (CBK).

Mr Russo who has also worked with audit firm PwC, K-Rep Bank, listed miller Unga Limited and East African Breweries, will lead the transition team that will report to the KCB Group chief executive Joshua Oigara.

The appointment comes barely a day after CBK shrugged off concerns raised by MPs, approving 100 per cent acquisition of NBK by KCB Group.

The CBK approval follows one by the Competition Authority of Kenya which has granted approval to the country’s biggest bank by assets to finalise the deal.

“We have set a target to fully integrate NBK into KCB in 24 months from acquisition. During that period, we will be taking a number of integration decisions including how to best structure NBK in order to more excellently deliver value to our customers,” said Mr Oigara in a statement Tuesday.

The regulator announced on Monday that the approval has been granted in accordance with section 13(1) (e) of the Banking Act, effectively paving the way for the completion of the deal within KCB timelines.

The acquisition, which is pursuant to regulation 4(1) of the of The Capital Markets (Take-overs and Mergers) Regulations, 2002is part of KCB’s ongoing strategy to explore opportunities for new growth while investing in and maximizing the returns from the group’s existing businesses.

It is anticipated that upon acquisition, NBK will continue to operate as a subsidiary of KCB Group for a maximum period of two years.

Once KCB acquires National Bank, it is expected to conclude the deal it is pursuing acquiring Imperial Bank, which has been under receivership.