History
NIC Bank Kenya Plc roots trace back to 1959 when its parent company, NIC Group, was formed as a joint venture by Standard Bank Limited of South Africa and Mercantile Credit Company Limited of the United Kingdom. NIC was initially a non-bank financial institution (NBFI).[6]
NIC Bank Kenya Plc was incorporated in 2016 as a result of the corporate reorganization of NIC Bank Group. Prior to January 2017, NIC Bank Group operated both as a licensed bank and a holding company for its subsidiaries.[7]
On 12 September 2016, NIC Bank Group announced its intention to incorporate a new wholly owned subsidiary, NIC Bank Kenya Plc, to which it would transfer its Kenyan banking business, assets and liabilities. The rationale for the re-organisation is that by converting NIC Bank Group into a non-operating holding company (as defined under the Banking Act) that owns both banking and non-banking subsidiary companies in order to support the Group’s medium and long term strategy.[7][8] The group reorganization was completed on 31 August 2017 upon approval from shareholders and the regulators.[9]
In 2017, the Central Bank of Kenya appointed NIC Bank as asset and liabilities consultant for Imperial Bank Limited (in receivership). Effectively, NIC Bank took over the responsibility of returning funds to the failed bank's deposit customers. The agreement also allows NIC to acquire some of the deposits, assets and liabilities of Imperial once its receiver manager the Kenya Deposit Insurance Corporation starts liquidating the bank.[10][11]
In December 2018, NIC Group announced that it would be merging with Commercial Bank of Africa Group (CBA) creating Kenya's third-biggest bank, by assets. The transaction was approved by the Kenyan regulators and shareholders in April 2019.[12] CBK announces the merger of Commercial Bank of Africa Limited (CBA) and NIC Group PLC (NIC) effective September 30, 2019.[13]
As of 18 May 2019, the merged group was still operating two sets of banks in Kenya, Uganda and Tanzania but was in the process of seeking regulatory approval to merge these business so that they can have one bank in each country and a group rebranding.[8] On 27 September 2019, the Central Bank of Kenya approved the merger and name changes, effective 1 October 2019. The merged non-banking holding company became NCBA Group Plc and the Kenyan subsidiary of the merged entity became NCBA Bank Kenya Plc. The names of the merged entity in Tanzania, Rwanda, Uganda and Ivory Coast will re-brand accordingly.[14]
