KCB Group is set to merge two of its investment units represented by KCB Capital and the Natbank Trustee and Investment Services Limited (NTISL/Natbank).
This is an effort to create a single imposing investment business.
“We plan to merge KCB Capital and Natrust to create a formidable wealth, asset management, custodial services and investment banking arm,” KCB Group Chairman Andrew Kairu said at an investor briefing on Wednesday.
The merger of the two investment units comes at the tail end of the buyout of NBK by the KCB Group.
KCB created KCB Capital in 2013 with the aim of providing strategic and financial advice to individual, government and institutional clients.
In 2014, KCB Capital received licensing from the Capital Markets Authority (CMA) to undertake investment banking activities.
The arm would later in the year acquire trading rights on the Nairobi Securities Exchange (NSE).
On its part, Natbank was incorporated in 1997 to offer investment and advisory services to NBK clients.
The unit holds an additional fund manager’s license from the Retirement Benefits Authority (RBA).
According to disclosures made as of June 2021, the pair of investment units has assets valued at just Ksh.1 billion.
KCB Capital is the bigger unit with total assets at Ksh.649.8 million while Natbank’s total assets sit at Ksh.123.2 million.
In six months to June 2021, Natbank made a Ksh.12.2 million net profit while KCB returned a Ksh.469,000 loss on falling income.