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Kenya Backs KCB Group’s National Bank Bid Despite Valuation

  • Lawmakers favor National Bank raising capital in rights issue
  • Finance chief says KCB Group takeover bid remains best option
General Economy As Kenya Faces Bleak 2018 Outlook In Vote Aftermath
Photographer: Luis Tato/Bloomberg
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KCB Group Ltd.’s bid to take over National Bank of Kenya is the best option for the state-controlled lender, acting Treasury Secretary Ukur Yatani said after a lawmakers’ committee moved to block the deal on valuation.

The National Assembly’s Finance and National Planning committee said Wednesday that NBK, as the lender is known, should consider a rights issue to boost its capitalization instead of being bought cheaply. NBK’s main shareholders, including the National Social Security Fund and National Treasury, are seeking ways to recapitalize the bank reeling from a non-performing loans ratio of 49%.