Commercial Bank of Africa
Commercial Bank of Africa (CBA) was a financial services provider headquartered in Nairobi, Kenya, the largest economy in the East African Community. CBA was licensed by the Central Bank of Kenya, the central bank and national banking regulator.[2]
 | |
| Type | Private Subsidiary |
|---|---|
| Industry | Banking |
| Fate | Merged to NIC Bank |
| Founded | 1962 |
| Defunct | 30 September 2019 |
| Headquarters | Upper Hill, Nairobi, Kenya |
Key people | Desterio Oyatsi (Chairman), Isaac Awuondo (Managing Director) |
| Products | Loans, credit cards, savings, investments, mortgages |
| Revenue |  Aftertax:US$36 million (KES:3,592 billion) (2015)[1] |
| Total assets | US$2.166 billion (KES:215.6 billion) (2015)[1] |
Number of employees | 1,104 (2015[1]) |
| Parent | Commercial Bank of Africa Group |
| Website | www |
As of December 2015, the bank was one of the largest commercial banks in Kenya with assets of approximately US$2.166 billion (KES:215.6 billion), with shareholders' equity of approximately US$217.83 million (KES:21.68 billion).[1] It was the largest privately owned commercial bank in Kenya.[3]
History
The bank was founded in 1962 in Dar es Salaam, Tanzania. Soon, branches were opened in Nairobi & Mombasa, Kenya and in Kampala, Uganda. When Tanzania nationalised private banks in 1967, the bank moved its headquarters to Nairobi. Following political changes in Uganda in 1971, the bank sold its assets in that country.[4]
At the beginning, CBA was owned by a consortium of financial institutions known as Société Financière pour les Pays d'Outre-Mer (SFOM), based in Switzerland. Original members of the consortium included Banque Nationale de Paris, Bank Bruxelles Lambert, Commerzbank, and Bank of America. In 1980, Bank of America acquired 84% shareholding, effectively buying out all the other SFOM partners. Sixteen per cent shareholding in CBA remained in the hands of Kenyan investors. During the 1980s Bank of America divested from the bank, putting 100% shareholding in CBA in the hands of Kenyan nationals.[4]
In December 2018, Commercial Bank of Africa Group (CBA Group) announced that it would be merging with NIC Group creating the Kenya's third-biggest bank. The Transaction was approved by the Kenyan regulators and shareholders in April 2019.[5][6] On 27 September 2019, the Central Bank of Kenya approved the merger, effective 1 October 2019. Through the merger, the combined group, NCBA Group, was to consolidate their banking business. This led to the transfer of business to one entity renamed NCBA Bank Kenya Limited.[7]
Ownership
Commercial Bank of Africa's ownership is under a shareholding structure. The Kenyatta family controls 24.91 percent of CBA through an investment vehicle called Enke Investments Limited.[3] The table below illustrates the shareholding in the company stock, as of December 2017.[8]
| Rank | Name of Owner | Percentage Ownership |
|---|---|---|
| 1 | Enke Investments Limited | 24.91 |
| 2 | Ropat Nominees Limited | 22.50 |
| 3 | Livingstone Registrars Limited | 19.90 |
| 4 | Yana Investments Limited | 11.14 |
| 5 | Ropat Trust Company Limited | 5.37 |
| 6 | Other Institutions & Individual | 16.18 |
| Total | 100.00 | |
Commercial Bank of Africa Group
Commercial Bank of Africa (Kenya) is a member of the CBA Group of companies. These include:
- Commercial Bank of Africa (Kenya) – Nairobi, Kenya
– 100% shareholding - Commercial Bank of Africa (Tanzania) – Dar es Salaam, Tanzania
– 100% shareholding - Commercial Bank of Africa (Uganda) – Kampala, Uganda
[9] – 100% shareholding - Commercial Bank of Africa (Rwanda) – Kigali, Rwanda
– 100% shareholding[10] - AIG Kenya Insurance Company Limited – Nairobi, Kenya – 33.33% shareholding. Balance of 66.67% shareholding in AIG Kenya held by the American International Group.
Governance
The Chairman of the board of directors is Desterio Oyatsi, one of the non-executive directors. Isaac Awoundo serves as the managing director.[1]
Other Executives Include:
- Mr. Muhoho Kenyatta - Deputy Chairman
- Mr. Isaac Awoundo - Group Managing Director
- Mr. Martin Mugambi - Group Executive Director
- Mr. Jeremy Ngunze - Chief Executive - Kenya
- Mr. Stuart J Armitage - Director
- Hon. Abdirahin Haithar Abdi - Director
- Mr. Nicholas A. Nesbitt - Director
- Mr. Nelson J.M Mainnah - Director
- Mr. Mukesh K. R. Shah - Director
See also
References
- CBA Group (28 March 2016). "CBA Annual Report and Financial Statements for 31 December 2015". Commercial Bank of Africa (CBA). Retrieved 28 September 2016.
- CBK (28 September 2016). "Central Bank of Kenya: Licensed Commercial Banks". Nairobi: Central Bank of Kenya (CBK). Retrieved 28 September 2016.
- Herbling, David (28 September 2016). "Kenyan mobile lender customers in Uganda hit 0.6 million in two months". The EastAfrican. Nairobi. Retrieved 28 September 2016.
- CBA Group (28 September 2016). "Commercial Bank of Africa: Our History". Nairobi: CBA Group. Retrieved 28 September 2016.
- Omar Mohammed (17 April 2019). "Kenya's NIC Group Shareholders Back Merger With CBA". Thomson Reuters. Retrieved 28 September 2019.
- "NIC Bank Limited shareholders approve reorganisation in an Extraordinary General Meeting". Retrieved 19 May 2019.
- George Obulutsa (27 September 2019). "Kenya Central Allows Merger of Lenders NIC and CBA Group". Reuters. Retrieved 28 September 2019.
- CABG (31 December 2017). "Shareholding in the Commercial Bank of Africa Group". Nairobi: Commercial Bank of Africa Group (CBAG). Retrieved 5 March 2018.
- Nakaweesi, Dorothy (22 January 2014). "Commercial Bank of Africa Returns To Ugandan Market". Daily Monitor. Kampala. Retrieved 4 August 2014.
- Ngigi, George (24 November 2015). "CBA seeks licence to start operating in Rwanda next year". Business Daily Africa. Nairobi. Retrieved 28 September 2016.
External links
- Website of Commercial Bank of Africa (Kenya)
- Website of Commercial Bank of Africa (Tanzania)
- Website of Central Bank of Kenya