By Gitahi Ngunyi
KCB Group has fired National Bank of Kenya Managing Wilfred Musau even before the merger of the two banks has received final approval from Central Bank of Kenya.
In a press release from KCB banking groups its Director for regional businesses, Paul Russo will be the transitional managing director for National Bank of Kenya.
The move comes when KCB Group PLC is set to take up control of the National Bank of Kenya (NBK) this week after it received the necessary regulatory approvals to acquire the lender.
According to a press release from KCB Group, Russo will serve as NBK managing director for the transitional 2-year period of its integration into KCB, subject to fit and proper approval by the Central Bank of Kenya (CBK).
Russo will lead the transition team that will report to the KCB Group Chief Executive Officer and Managing Director Joshua Oigara.
The developments come a day after the CBK said on Monday that it had no objection to KCB Group planned acquisition of 100 percent stake in NBK in an offer to shareholders which closed on Friday August 30, 2019.
The CBK approval followed the one by the Competition Authority of Kenya which last week granted approval to East Africa’s largest bank by assets to finalize the deal.
“We are confident that we shall conclude this process shortly following the receipt of the necessary approvals. We have received a good indication from NBK shareholders and we shall announce the official results within the legally stipulated timelines so as to get into the next steps of the transaction,” said Oigara adding that KCB Group has embarked on verification of the returns by the shareholders.
The transaction is subject to regulatory approvals pursuant to regulation 4(1) of the of The Capital Markets (Take-overs and Mergers) Regulations, 2002.
The acquisition is 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.
“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 Oigara.