Co-operative Bank makes history with new acquisition

Co-operative Bank is set to make history with the acquisition of Jamii Bora Bank, after a case-study recovery scenario from a loss-making status of Sh2.3 billion in 2001 to building an asset base of Sh450 billion.

The acquisition will cement Co-operative Bank’s 3rd position in the Kenya banking industry and push its asset base to Sh462.5 billion. The deal is subject to approval by the relevant authorities.

The acquisition will also catalyze the bank’s chosen strategy of “increased dominance” in the Kenyan market, the cooperative movement lender said in a statement.

“Co-op Bank has chosen a strategy of ‘increased dominance’ in the Domain Market Segment (Kenya) and has the opportunity to cross-sell and deepen product offering to the enhanced customer base. Jamii Bora will leverage on this technical expertise,” the bank said in a statement.

Although Jamii Bora Bank will only add just about 360,000 customers to the bank’s over 8 million strong customer base, it will boost its technical expertise and more importantly expand its capability to reach out to more micro, small and medium businesses.

Co-operative Bank already has an elaborate Micro, Small and Medium Enterprises products.
The acquisition will leverage on Co-operative Bank’s tight grasp of the 15 million-member cooperative movement that predominantly (64.5%) own the bank and has the opportunity to create a niche bank to offer specialised credit offerings.

“Mergers and acquisitions are beneficial in any economy, in creating more resilient and competitive institutions,” noted the bank in a statement.

Co-operative Bank Group has several subsidiaries which include; Co-operative Bank of Kenya Limited, Co-optrust Investment Services Limited (100%), Co-op Consultancy & Insurance Agency Limited, (100%), Kingdom Securities Limited (60%), and Co-operative Bank of South Sudan Limited (51%).

It associates companies include; CIC Insurance Group (24.7%), and Co-op Bank Fleet Africa Leasing Limited (25%)
Jamii Bora Bank has a strategic niche in medium and small-scale enterprises banking and microfinance plus two subsidiaries of Jamii Bora Leasing Limited and Jamii Bora Insurance Agency Limited.
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