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House to probe KCB bid to buy National Bank

Thursday May 2 2019

Customers at KCB-Kencom Branch banking Hall in Nairobi

Customers at a KCB banking Hall in Nairobi. KCB is set to buy struggling state-owned National Bank of Kenya. FILE PHOTO | NATION MEDIA GROUP 

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The National Assembly has 60 days to investigate the proposed takeover of the National Bank of Kenya (NBK) by Kenya Commercial Bank (KCB) PLC following a directive by Speaker Justin Muturi.

Mr Muturi’s directive came after Nyatike MP Tom Odege raised doubts over the proposed takeover saying it should be investigated to clear doubts and establish whether it was subjected to public participation.

Mr Odege said that because the bank is almost bankrupt, it is important to establish whether it was properly valued at Sh5 billion if pensioners and taxpayers’ interests have to be safeguarded.

“It is against this background that the government ought to intervene so as to safeguard her interests and those of pensioners and employees and ensure that the takeover is done in an open manner where public participation is conducted and all stakeholders are involved,” Mr Odege said.

Mr Muturi directed that the Finance and National Planning Committee, chaired by Kipkelion East MP Joseph Limo, investigates the matter.

“Mr Odege has raised a very important matter; that of public participation,” Mr Muturi said. The committee is expected to establish why the acquisition was single-sourced.