Home ECONOMY Planned Acquisition of NBK by KCB Group Challenged in Court

Planned Acquisition of NBK by KCB Group Challenged in Court

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A petition has been filed in court challenging the planned acquisition of National Bank of Kenya by KCB Group on the grounds that the deal is marred with illegalities, irregularity and that most of the details on the merger are scanty.

In their petition, Evans Aseto and John Kiptoo claim that the plan to acquire 100 per cent shares of NBK has been without any public participation even though National Treasury and NSSF have up to 50 per cent of the shareholding in the bank.

“We are apprehensive that the acquisition of 1st respondent by the 2nd respondent will occasion loss of jobs to may Kenyans under the employment of respondents as there is high likelihood that various positions will be declared redundant,” part of the petition read.

The banks have been faulted for not obtaining an authorizing order from the Competition Authority of Kenya to oversee such transaction and subsequently give or deny approval.

Also mentioned in the case is the lack of clarity on the financial health of NBK books considering the auditor general has not audited the bank.

Public Investment Committee has confirmed that NBK has not been audited citing futility by the office of the Auditor General to audit the bank.

The two, therefore, want the transaction to be stopped pending the final ruling adding that the courts should order for an independent
audit into NBK.

The petitioners also want the two banks compelled to provide information and documents relating to the transactions. Last week, KCB group shareholders approved the acquisition deal, and NBK shareholders are expected to vote on the proposed deal next week.

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