Tanzanian Bank M cleared to acquire Oriental Bank of Kenya

Baba Kiki · 2016-06-16T12:53:51+00:00

The Central Bank of Kenya (CBK) has cleared the acquisition of a 51 per cent stake in the shareholding of Oriental Commercial Bank. It was licensed to operate in Kenya in 1991, and was ranked 37th in terms of market share as at 31 December 2015, with nine branches. Bank M of Tanzania was licensed in February 2007, and is focused on corporate and investment banking. It becomes the first bank from Tanzania to enter the Kenyan banking sector. The deal had earlier received the nod of the Competition Authority of Kenya. CBK gave the initial green light in May last year. Deal valued at Sh1.3bn Last year Oriental shareholders approved the allotment of 42,281,893 ordinary shares valued at Sh30 each to M Holdings valuing the deal at Sh1.3 billion. M Bank has a deposit base of Sh31.8 billion and a loan book of Sh33.5 billion. Oriental Commercial Bank recorded a profit drop for two years in a row last year after it posted net earnings of Sh43 million down from Sh72 million in 2014 and Sh140 million a year earlier. It has a deposit base of Sh6.2 billion and a loan book of Sh5.2 billion. Source: Daily Nation My take: Sijui kwa nini Benki kongwe kama CRDB bado zinajivutavuta.

Thread starter Baba Kiki
Start date Jun 16, 2016

Baba Kiki

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Tanzanian Bank M cleared to acquire Oriental Bank of Kenya

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