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Kenya court clears case against National Bank acquisition

Kenya court
Two individuals Evans Aseto and John Kiptoo filed the petition on grounds of the legality of the deal

The High Court of Kenya has dismissed a court case aimed at stalling a proposed offer by the Kenya Commercial Bank to take over the National Bank of Kenya. The court case against the National Bank of Kenya acquisition was filed by two individuals Evans Aseto and John Kiptoo on the grounds of  the legality of the deal. 

“We are apprehensive that the acquisition of 1st respondent by the 2nd respondent will occasion the loss of jobs to may Kenyans under the employment of respondents as there is high likelihood that various positions will be declared redundant,” they said.

Because the National Treasury and National Social Security Fund holds 50 percent of the shares in National Bank of Kenya, it is subject to public participation, both stated in their suit. 

Their main concern was that the deal between the two banks may cause loss of jobs to Kenyans as several positions might become redundant. 

However, the court in its ruling dismissed the petition because it lacked substantial reasoning to prevent the acquisition from taking place. Shareholders of both banks have already approved the takeover. The two individual emphasised that if the court allows the acquisition to proceed, it might lead to series employment issues related to staff welfare/ 

In addition, the court said that the National Bank of Kenya employees will be subject to stringent laws under the Employment Act. Treasury CS Ukur Yattani in a statement to the media said that the government as a shareholder is also part of the merger process. 

Previously, the court had declared the matter as urgent. 

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