Kenya suspends privatisation of three banks
The government is awaiting the results from the Competition Authority of Kenya's review.The Kenyan government has suspended the sale of National Bank, Consolidated Bank and Development Bank, after the Competition Authority of Kenya (CAK) said it has not yet received formal application for review.
"We have to know first if it is a merger because if the three banks are currently controlled by one person, either a natural person or a legal person, then it is not a merger but just a consolidation," said Kariuki Wang’ombe, director general of the Competition Authority of Kenya (CAK), told the EastAfrican.
Solomon Kitungu, the executive director of the country’s Privatisation Commission, added that the next steps related to the privatisation of the banks will be taken according to the recommendations of the CAK.
"We are already looking for a consultant to carry out a review of the feasibility, possible options and modalities of merging the three banks," he told the newspaper.
The banks had been lined up for privatisation as part of a reform programme intended to remove the state from bank ownership and reduce their number, which currently stands at 43.