The Central Bank of Kenya (CBK) has approved the acquisition of 100 per cent shareholding of National Bank Limited (NSE:NBK) by KCB Group PLC (NSE:KCB, USE:KCB, RSE:KCB).

In the press release, CBK said that the acquisition will strengthen both institutions leveraging their respective well-established domestic and regional corporate, public sector and retail franchises.

KCB Group is a Kenyan non-operating holding company that owns banking subsidiaries in the East African region in Kenya, Uganda, Tanzania, Rwanda, Burundi, and South Sudan. In addition, the Group owns non-banking subsidiary KCB insurance agency, KCB capital, and KCB foundation.

KCB Group oversees operations of the KCB Bank Kenya Limited and all other subsidiaries.

NBK was incorporated in 1968 as a wholly-owned government entity but over the years had shed its shareholding. The bank is listed on the Nairobi Securities Exchange and owns two subsidiaries: NBK Insurance Agency Limited and Natbank Trustees and Investment Service Limited.