The Central Bank of Kenya (CBK) has announced the acquisition of 100% of Giro Commercial Bank Ltd by I&M Bank Ltd effective February 13. I&M is a wholly owned banking subsidiary of I&M Holdings Ltd (IMHL), a non-operating holding company authorized by the CBK under Section 13(4) of the Banking Act.
The acquisition follows CBK’s approval on October 27, 2016, for IMHL to acquire 100% shareholding of Giro Commercial Bank Ltd (GCBL) under and approval by the Cabinet Secretary National Treasury on January 27, 2017, under Section 9 of the Banking Act.
Consequently, effective February 13, 2017, GCBL has ceased to be a bank licensed by CBK, and its rights and obligations have been taken up by I&M Bank. All GCBL stakeholders including depositors, employees, and creditors will continue their relationship with I&M Bank.
I&M Bank was licensed in 1996 and was ranked 9th in terms of market share as at December 31, 2016, with 35 branches while GCBL was licensed in 1992 and was ranked 26th in terms of market share as at the same time, with 7 branches. Taken together, they had a combined market share of about 5% as at December 31, 2016.
IMHL has a banking presence in Kenya, Mauritius, Rwanda, and Tanzania, and is listed at the Nairobi Securities Exchange.
