History

National Bank joins the strong KCB Group heritage.

In 2019, KCB Group Plc made an offer to acquire 100% of NBK. Through a notice published on September 6th 2019, KCB announced the success of the acquisition.

NBK has now joined the strong KCB heritage as a subsidiary of the largest indigenous Bank by assets in the East African region. The transaction was guided by the Capital Markets (Take-overs and Mergers) Regulations, 2002. Equally, the process was subjected to approvals from the Bank’s shareholders, Central Bank of Kenya, and the Competition Authority of Kenya.

In March 2016, the Bank announced 2015 full year results reporting a loss of KShs1.2B for the year ended 31 December 2015. The Bank attributed the loss to heavy provisions and loan impairment charge which increased by KShs. 3.2b over the period.

The Bank’s non-performing loan portfolio increased sharply towards the end of 2015 undoing gain of Ksh3.3B in profit before tax reported by the bank in Q3 2015. This led to the exit of Munir Ahmed from the bank.  Mr Wilfred Musau was then appointed as the Managing Director of the Bank since October 2016.

In 2012, Munir Ahmed was appointed the Managing Director of National Bank with a set agenda to transform the Bank to a tier one lender by 2017. In May 2013, NBK rebranded and transformed in an effort to stand out from the crowd by coming out of the old National Bank image people used to know to a new image. The rebrand was a great success that the bank was awarded the Rebrand Global Award while Mr. Munir Ahmed won the CEO of the Year in Finance at the East Africa Banking Awards.

Mr. Marambii served as the Managing director and a member of the Board of Directors up to 31st August, 2012.

As a result of the good performance in the year 2009, the bank eliminated the revenue reserve account deficit, which stood at Kshs.1, 374,000 million at the close of the year 2008, leaving a surplus of Kshs.53.5 million. This turnaround was a milestone in the Banks 2009-2010 plan period. The elimination of the deficit paved way for the payment of dividends from future profits.

New Technology. Installation of ATMs across network .

Bonds. Goverment issued  a 20 year bonds as payment for its guranteed  debts.

Centralization of Systems. Bank master & branch power branches. Partnered with KRA, TSC, DOD to boost bank deposits and income.

Take Over, NBK Take over of its subsidiary Kenya.

The bank underwent a restructuring program. Closure of some branches and agencies.

On 31st December, 1998 at the 30th Shareholders Annual General Meeting, Mr Reuben Marambii was appointed as the Managing Director of the Bank with a role to restructure and bring the bank back to profitability. The bank was then in a deficit of 8.6 billion at the CBK with instructions and pressure from the Goverment and IMF for it to be closed. A new chairman Michael Muhindi was also appointed.

The Bank later bought other branches from the Standard Bank when they were put up for sale between 1995 and 1996. This was very convenient because they were acquired as going concerns, they were: Molo, Kapsabet, Bungoma, Kitui and Limuru branches as well as Portway Branch in Mombasa.

By December 1985 the National Bank of Kenya had installed computers at its Kenyatta Avenue and Moi Avenue branches and would later install computers at the Harambee Avenue branch in order to serve customers better. It was the first bank in East Africa to be nearly completely computerized.

In 1987, National Bank among other government owned banks were ordered to sell their 30 per cent shares to the Kenyan public The shares went on sale in November 1994 and it was a resounding vote of confidence in the National Bank with an oversubscription which went beyond all expectations. The total shares applied for were 120 million, three times the number that the Bank had offered. And the gain for the Bank was due to the public viewing the Bank as a Bank of the people. In addition, a major development for the National Bank was the conversation of the deposits of the National Social Security Fund (NSSF) into equity, a move that turned the Bank’s largest creditor into a shareholder.

The second branch was in Mombasa along Nkrumah Road which opened for business on June 2nd 1970. The branch was officially opened on 18th August 1970, by the first president of the Republic of Kenya, His Excellency Mzee Jomo Kenyatta, who unveiled the plaque to mark the opening.

The first branch of the bank at Development House acted as the head office for the then rapidly growing bank. Uchumi House branch and Kisumu branches followed in January of 1973.

In 1977, the National Bank building was officially launched to act as the head office and host Harambee Avenue branch.

The official opening of the bank was done on 14th November 1968, attended by both staff and customers. The ceremony was officiated by the then Vice-president, His Excellency Daniel Moi. The Bank’s logo then was the map of Kenya and the lion in the middle with the slogan was “National Bank of Kenya; Is here to serve you”.

The National Bank of Kenya was incorporated in 1968 to offer a wide range of commercial banking facilities. It opened its doors to the public on 30th September 1968 in development house, government Road (currently Moi Avenue) as the first branch with 20 staff members. It was fully owned by the Government at the time.

Financial turbulence, CBK appointed a new board and new Managing Director R.M Marambi to salvage the bank

National bank was established by the Kenyan Goverment on June 19th 1968.