Kenya Commercial Bank
Encyclopedia
Kenya Commercial Bank is a financial services provider headquartered in Nairobi
, Kenya
. , it was among the three largest commercial bank
s in Kenya with assets of more than US$2.65 billion (KES:223 billion), and shareholders capital valued at US$486 million (KES:40.9 billion). The other two large Kenyan commercial banks are Barclays Bank Kenya and Standard Chartered Bank Kenya
. , KCB Group, the parent company of KCB Kenya, had the largest branch network in Kenya
(168 branches) of all 44 licensed commercial banks in the country.
Shares of the stock of Kenya Commercial Bank Group (KCB Group), the parent company of Kenya Commercial Bank, are listed on the Nairobi Stock Exchange
(NSE), under the symbol (KCB). The Group's stock is also cross listed on the Uganda Securities Exchange
(USE), the Rwanda Stock Exchange
(RSE) and the Dar-es-Salaam Stock Exchange
(DSE).
, KCB Group was the largest financial services group in East Africa
, with an asset base valued at over US$3 billion (KES:251 billion). At that time, KCB Group had the widest network of banking outlets comprising nearly 220 branches in Kenya
, Rwanda
, Southern Sudan, Tanzania
and Uganda
.
. Eight years later in 1904, the bank extended its operations to Nairobi, which had become the headquarters of the expanding railway line to Uganda
.
The next major change in the bank's history came in 1958. Grindlays Bank
merged with the National Bank of India to form the National and Grindlays Bank. Upon Kenya's independence in 1963, the Government of Kenya acquired 60% shareholding in National & Grindlays Bank in an effort to bring banking closer to the majority of Kenyans. In 1970, the Government of Kenya acquired 100% ownership of the bank's shares to take full control of the largest commercial bank in Kenya. National and Grindlays Bank was renamed Kenya Commercial Bank. The Government has over the years reduced its shareholding in KCB to 23%, as of December 2008. In a rights issue which concluded in August 2010, the shareholding by the Kenyan Government was reduced to 17.74%.
In 1972, Savings & Loan (Kenya) Limited was acquired to specialize in mortgage finance. In 1997, another subsidiary, Kenya Commercial Bank (Tanzania) Limited was incorporated in Dar es Salaam
, Tanzania
, to provide banking services and promote cross-border trading. In May 2006 KCB extended its operations to Southern Sudan following licensing by the Bank of Southern Sudan
. In November, 2007, the first branch of KCB Uganda Limited opened in Kampala
, Uganda
following licensing by the Bank of Uganda
. In 2008, KCB expanded to Rwanda
, where the first branch opened in Kigali
in December 2008. A subsidiary is expected to be opened in Burundi
soon.
section of Nairobi
. Construction is expected to take approximately two years, with anticipated occupancy beginning in January 2013. The new Kenya Commercial Bank Plaza
(KCB Plaza), will consist of twenty-one (21) storeys, comprising about 171800 ft2, of rentable office space, and enough parking for about four hundred fifty cars. The owners of the building are the Kenya Commercial Bank Employee Pension Fund, who are funding the US$26 million (KES:2.1 billion) construction.
s in Kenya. Since 2004 all of the branches in Kenya have been re-branded as part of a wider corporate branding exercise. KCB has partnered with Pesa Point to increase the number of ATM points where customers can access their funds.
is Peter Muthoka and the Managing Director and the Chief Executive Office of the bank is Martin Oduor-Otieno.
. Since 2003 Kenya Commercial Bank has been sponsoring the Safari Rally
- East Africa Rally Championships ( which consists of the Kobil rally in Tanzania, Pearl of Africa in Uganda and the Safari Rally in Kenya) and the Kenya National Rally Championship which consists of eight series throughout the year.
Nairobi
Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
, Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
. , it was among the three largest commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in Kenya with assets of more than US$2.65 billion (KES:223 billion), and shareholders capital valued at US$486 million (KES:40.9 billion). The other two large Kenyan commercial banks are Barclays Bank Kenya and Standard Chartered Bank Kenya
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
. , KCB Group, the parent company of KCB Kenya, had the largest branch network in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
(168 branches) of all 44 licensed commercial banks in the country.
Shares of the stock of Kenya Commercial Bank Group (KCB Group), the parent company of Kenya Commercial Bank, are listed on the Nairobi Stock Exchange
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...
(NSE), under the symbol (KCB). The Group's stock is also cross listed on the Uganda Securities Exchange
Uganda Securities Exchange
The Uganda Securities Exchange is the principal stock exchange of Uganda. It was founded in June 1997. The USE is operated under the jurisdiction of Uganda's Capital Markets Authority, which in turn reports to the Bank of Uganda, Uganda's central bank.The exchange's doors opened to trading in...
(USE), the Rwanda Stock Exchange
Rwanda Stock Exchange
The Rwanda Stock Exchange , is Rwanda's principal stock exchange. It was founded in January 2011. The RSE is operated under the jurisdiction of Rwanda's Capital Markets Advisory Council, , which in turn reports to National Bank of Rwanda, the country's Central Bank.The exchange's doors opened for...
(RSE) and the Dar-es-Salaam Stock Exchange
Dar-es-Salaam Stock Exchange
The Dar es Salaam Stock Exchange is a stock exchange located in Dar es Salaam, the largest city in Tanzania. It was incorporated in September 1996 and trading started in April 1998; it is a member of the African Stock Exchanges Association. The exchange is open five days a week, from Monday through...
(DSE).
Kenya Commercial Bank Group
Kenya Commercial Bank is a member of the KCB Group of companies. These include:- Kenya Commercial Bank - Nairobi, Kenya
- KCB Rwanda - KigaliKigaliKigali, population 965,398 , is the capital and largest city of Rwanda. It is situated near the geographic centre of the nation, and has been the economic, cultural, and transport hub of Rwanda since it became capital at independence in 1962. The main residence and offices of the President of...
, RwandaRwandaRwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo... - KCB Sudan - Juba, South SudanSouth SudanSouth Sudan , officially the Republic of South Sudan, is a landlocked country located in the Sahel region of northeastern Africa. It is also part of the North Africa UN sub-region. Its current capital is Juba, which is also its largest city; the capital city is planned to be moved to the more...
- KCB Tanzania - Dar es SalaamDar es SalaamDar es Salaam , formerly Mzizima, is the largest city in Tanzania. It is also the country's richest city and a regionally important economic centre. Dar es Salaam is actually an administrative province within Tanzania, and consists of three local government areas or administrative districts: ...
, TanzaniaTanzaniaThe United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state... - KCB Uganda - KampalaKampalaKampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
, UgandaUgandaUganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by... - KCB Foundation Limited - Nairobi, Kenya
- KCB Sports Sponsorship Limited - Nairobi, Kenya
- Savings & Loan Kenya Limited - Nairobi, Kenya
, KCB Group was the largest financial services group in East Africa
East Africa
East Africa or Eastern Africa is the easterly region of the African continent, variably defined by geography or geopolitics. In the UN scheme of geographic regions, 19 territories constitute Eastern Africa:...
, with an asset base valued at over US$3 billion (KES:251 billion). At that time, KCB Group had the widest network of banking outlets comprising nearly 220 branches in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
, Southern Sudan, Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
and Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
.
History
The history of Kenya Commercial Bank (KCB) dates back to 1896 when its predecessor, the National Bank of India opened an outlet in MombasaMombasa
Mombasa is the second-largest city in Kenya. Lying next to the Indian Ocean, it has a major port and an international airport. The city also serves as the centre of the coastal tourism industry....
. Eight years later in 1904, the bank extended its operations to Nairobi, which had become the headquarters of the expanding railway line to Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
.
The next major change in the bank's history came in 1958. Grindlays Bank
Grindlays Bank
The Grindlays Bank was a major British overseas bank established in 1828.It operated mainly in British colonies, especially British India. After decolonization, it was a major foreign bank in India, Pakistan and other West Asian countries. As ANZ Grindlays Bank, it was for a while the largest...
merged with the National Bank of India to form the National and Grindlays Bank. Upon Kenya's independence in 1963, the Government of Kenya acquired 60% shareholding in National & Grindlays Bank in an effort to bring banking closer to the majority of Kenyans. In 1970, the Government of Kenya acquired 100% ownership of the bank's shares to take full control of the largest commercial bank in Kenya. National and Grindlays Bank was renamed Kenya Commercial Bank. The Government has over the years reduced its shareholding in KCB to 23%, as of December 2008. In a rights issue which concluded in August 2010, the shareholding by the Kenyan Government was reduced to 17.74%.
In 1972, Savings & Loan (Kenya) Limited was acquired to specialize in mortgage finance. In 1997, another subsidiary, Kenya Commercial Bank (Tanzania) Limited was incorporated in Dar es Salaam
Dar es Salaam
Dar es Salaam , formerly Mzizima, is the largest city in Tanzania. It is also the country's richest city and a regionally important economic centre. Dar es Salaam is actually an administrative province within Tanzania, and consists of three local government areas or administrative districts: ...
, Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
, to provide banking services and promote cross-border trading. In May 2006 KCB extended its operations to Southern Sudan following licensing by the Bank of Southern Sudan
Bank of Southern Sudan
The Bank of South Sudan is the central bank of South Sudan. Established in 2005, it was a branch of the Bank of Sudan until 9 July 2011, when South Sudan seceded to become an independent republic.-Location:...
. In November, 2007, the first branch of KCB Uganda Limited opened in Kampala
Kampala
Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
, Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
following licensing by the Bank of Uganda
Bank of Uganda
The Bank of Uganda is the Central Bank of the Republic of Uganda. Established in 1966, by Act of Parliament, BOU is 100% owned by the Government of Uganda, but is not a government department.-Organization and Governance:...
. In 2008, KCB expanded to Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
, where the first branch opened in Kigali
Kigali
Kigali, population 965,398 , is the capital and largest city of Rwanda. It is situated near the geographic centre of the nation, and has been the economic, cultural, and transport hub of Rwanda since it became capital at independence in 1962. The main residence and offices of the President of...
in December 2008. A subsidiary is expected to be opened in Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...
soon.
Kenya Commercial Bank Plaza
In December 2010, construction of a new headquarters building began in the Upper HillUpper Hill, Nairobi
Upper Hill is a neighborhood in the city of Nairobi, the capital and largest city in Kenya.-Location:Upper Hill is located by road west of the central business district of Nairobi...
section of Nairobi
Nairobi
Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...
. Construction is expected to take approximately two years, with anticipated occupancy beginning in January 2013. The new Kenya Commercial Bank Plaza
Kenya Commercial Bank Plaza
Kenya Commercial Bank Plaza is a building under construction in Nairobi, Kenya's capital and largest city.-Location:The skyscraper will be located in Upper Hill, approximately , by road, west of the central business district of Nairobi...
(KCB Plaza), will consist of twenty-one (21) storeys, comprising about 171800 ft2, of rentable office space, and enough parking for about four hundred fifty cars. The owners of the building are the Kenya Commercial Bank Employee Pension Fund, who are funding the US$26 million (KES:2.1 billion) construction.
Ownership
, the Government of Kenya owns 17.74% of Kenya Commercial Bank. The remaining 82.26% is owned by institutional and private investors.Branch network
KCB has more than 150 branches throughout Kenya, making it the largest banking network in the region. It has the largest number of own-branded ATMAutomated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s in Kenya. Since 2004 all of the branches in Kenya have been re-branded as part of a wider corporate branding exercise. KCB has partnered with Pesa Point to increase the number of ATM points where customers can access their funds.
Officers & Management
The Chairman of the bank's Board of DirectorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
is Peter Muthoka and the Managing Director and the Chief Executive Office of the bank is Martin Oduor-Otieno.
Sports
KCB owns a sports club, that has teams in Kenyan football, rugby, volleyball and basketball leagues. See Kenya Commercial Bank (sports club)Kenya Commercial Bank (sports club)
Kenya Commercial Bank is a Kenyan multisport club based in Nairobi.Its football team has played for several years in the Kenyan Premier League....
. Since 2003 Kenya Commercial Bank has been sponsoring the Safari Rally
Safari Rally
The Safari Rally is considered by many to be the world's toughest rally. It was first held from 27 May to 1 June 1953 as the East African Coronation Safari in Kenya, Uganda and Tanganyika, as a celebration of the coronation of Queen Elizabeth II...
- East Africa Rally Championships ( which consists of the Kobil rally in Tanzania, Pearl of Africa in Uganda and the Safari Rally in Kenya) and the Kenya National Rally Championship which consists of eight series throughout the year.