Monday, 6 October 2008

Kenya Commercial Bank

In view of the stated acquisition objectives of Ecobank, we have been looking around for possible targets. Kenya Commerical Bank would fit the bill but would also be a bit bigger takeover than most in the market are looking for.

It has a strong balance sheet, a competent and effective mangement team and 145 branches. In addition, it owns subsidiaries in Tanzania, Sudan and Uganda, as well as plans for Rwanda. The bank has experienced declining capital adequacy ratios as a result of the Kenyan specific issues and its own rapid growth. Timing could prove interesting. The bank has a 59% free float, although government approval would be needed as they have a 26% stake.

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