NIC Group Managing Director (MD) John Gachora has been selected to head the merged entity that will arise from the union between NIC Bank and Commercial Bank of Africa (CBA), the two lenders announced on Wednesday.
The lenders similarly announced that CBA’s MD Isaac Awuondo will act as the merged unit’s chairman and he will also be tasked with managing the entity’s digital business.
According to a joint statement from the two lenders, the merged entity will receive a facelift in the form of a new operating name and brand.
“The merged group will operate under a new name and brand, which will be determined prior to concluding the merger. The combined entity’s board of directors and executive management team will also be well balanced between the two institutions,” the two banks said in the joint statement.
The imminent merger between the two banks received a boost on Tuesday after the Competition Authority of Kenya approved the unification of the lenders on the condition that they do not terminate the employment of approximately 1,872 local staff for a duration of one year after the fusion of the entities.
The unit formed from the merger between the two lenders will become the country’s second largest bank in terms of market share with a 10.67 per cent stake in Kenya’s financial market. Despite this it is likely that the entity will still face competition from Tier 1 banks who collectively own 55.32 per cent of the country’s financial market share.