Connect with us


Joshua Oigara: Why KCB did not bid to buy Chase Bank



JOSHUA OIGARA, CEO, KCB GROUP: We were participants in the revival of Chase Bank.

When Chase Bank was put up for sale last year, many eyes were trained on Joshua Oigara. The KCB Group which he heads had taken over management of Chase Bank in April 2016 after it was put under receivership and thus was seen as the best suitor for a bank it was literally baby-sitting.

Yet when the ailing bank really needed a buyer, KCB was not among the bidders, which left many wondering whether it feared something it had noticed.

KCB Chief Executive Joshua Oigara looks back at those moments with a smile as if to say the reason it kept off was so obvious. “Chase bank was looking for a new buyer or owner,” says Mr Oigara. “Since we were the bank that was curating it, we never offered to buy it. The bidding process needed a level playing field and our participation would have made field uneven since we were insiders.”

Eventually, of 12 shortlisted bidders, Mauritian lender SBM Holdings emerged winner. As part of the deal, SBM will acquire the lender’s assets and liabilities and absorb Chase Bank’s staff estimated at 1,300 in about 62 branches.

SEE ALSO: Entrepreneurs strike Sh138 million deals at KCB Lion’s Den
READ: Various types of handshakes and their meanings

SBM Group is one of the largest banking and financial services institutions listed on the Stock Exchange of Mauritius with a market capitalization of approximately $700 million as at 31 July 2017 and total assets of over $5 billion as at 30 June 2017.

Mr Oigara says KCB is, in fact, preparing to hand over the bank to Kenya Deposit Insurance Corporation (KDIC) on February 15th this year.

This will mark a milestone both for CBK in ensuring a bank that stared death in the face was resuscitated and to KCB for being the first bank in Kenya to successfully rehabilitate a troubled financial institution. KDIC will then hand over the bank to its new owners.

“We are currently doing handing over notes,” Mr Oigara said during an interview with Business Editors last week.

Taking up Chase Bank would have significantly expanded the bank’s asset base. Also, KCB’s eye could be focused on a different deal: there has been talk of the bank courting National Bank of Kenya, which would prove a better buy.

READ: Travellers hit as SGR fares to Mombasa double

Nokia 8 - Share Both sides of the story.

Managing Editor, BUSINESS TODAY. Luke is a veteran business journalist with over 10 years experience in reporting and editing, having worked for People Daily and Standard Newspaper as reporter and the Nation Media Group as business editor. Email: [email protected] ke

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Education10 hours ago

Oxford launches guidebook for new curriculum

Oxford University Press (OUP) East Africa has, in partnership with teacher trainers, launched a free resource book in preparation for competency-based...

NEWS1 day ago

5 simple tricks Gordon Ogada used to win Sh230m mega jackpot

Gordon Paul Ogada, the guy from Kibera who won the SportPesa Mega Jackpot worth Ksh230,742,881 two weeks ago, is has...

Economy1 day ago

Drivers to pay Sh5,000 for refresher course

NTSA will also subject the drivers to medical tests on conditions that my affect their daily duties in the road

Health1 day ago

Govt partners with Johnson & Johnson on cancer control

The National Cancer Control Strategy 2017-2022 is geared at reducing cancer incidences, morbidity and mortality in Kenya

Disruptors2 days ago

Six-year-old boy creates high-tech computer game

EthanMan app is available for downloads on android play store for kids to read books and play games

NEWS2 days ago

Miguna makes fresh demand on passport

Judge Kimaru said the removal of Miguna Miguna from Kenya on February 6th was illegal and had no merit in...

Economy2 days ago

Citizens to get Sh30,000 bonus as economy grows

Singapore expects an overall budget surplus equivalent to 2.1 percent of its GDP

NEWS2 days ago

Gold worth Sh100 million found at JKIA

The gold is alleged to have been in the custody of a 46-year-old Tanzanian man

NEWS3 days ago

Water crisis hits major towns as rivers dry up

Athi Water Services Board, which manages water resources in various urban areas, notes 75% of Nairobi residents do not get...

Health3 days ago

Ebola scare after a student dies in Keiyo South

County executive says they have already communicated with the ministry of Health headquarters and a sample sent to the Kenya...