The Co-operative Bank of Kenya, which last year recorded its best ever financial performance, has proposed a reorganisation that would see it split into a non-operating holding company.
Currently a listed entity, the bank’s board has now reportedly approved plans to convert the bank into a non-operating holding company.
Co-operative Bank of Kenya Limited will be renamed Co-opbank Group plc, while a new wholly owned subsidiary, Co-op Bank Kenya Ltd, will take over operations of the banking business.
African tech news portal Tech-ish reports the announcement came in the form of a cautionary notice to the Nairobi Securities Exchange, which is typical of a company about to undergo material changes to its legal structure.
The notice, signed by group managing director and CEO Gideon Muriuki, states that it will involve “synergising group operations for further growth and expansion”.
Specifically, the new structure could reportedly enable a separate CEO to run the Kenyan banking side of the business, enabling Muriuki to focus on group-wide strategy.
Details on what this growth strategy will look like aren’t yet public, notes Tech-ish: “Every major Kenyan bank has restructured into an NOHC before making a serious push beyond Kenya’s borders”.
This could mean the co-op expanding into neighbouring countries, scaling its non-banking subsidiaries, or pursuing further partnerships and acquisitions. With around 65% of the bank owned by Kenya’s 15-million-strong co-operative movement, this could include bringing in other co-ops across East Africa.
The proposals require formal approval by shareholders at the next AGM, as well as by the Central Bank of Kenya, the Capital Markets Authority, the Registrar of Companies, and a handful of financial regulators.
Last year, the Co-op Bank of Kenya reported record profits of KSHS 34.8bn for FY2024, an increase of 7.5% over the previous year. The bank said this was the best financial performance in its history, with a 10.7% growth in assets and 12.5% rise in total operating income.
