KCB, Nairobi county in tussle over loan
KCB Group has sued the Nairobi county for failing to repay its loan of more than Ksh4 billion. KCB CEO Joshua Oigara has sought the national government’s help in recovering the long overdue loan. The bank fears it will suffer a substantial financial loss if the county fails to pay back the loan.
The loan in question was originally provided to the county by Equity Bank in 2011. KCB bought the loan from Equity in 2014. But KCB later clashed with the Nairobi county over the loan and the dispute went to arbitration in 2019. The arbiter directed the county to pay back the loan with interest but the county has failed to honour the order, resulting in KCB taking the matter to court.
Who owns KCB Group?
KCB Group is a publicly traded financial services group with operations in Kenya, Tanzania, Uganda, Rwanda, Burundi, and South Sudan. The group plans to enter Ethiopia’s banking market alongside its Kenyan rival Equity Bank. KCB shareholders include the Kenyan government, which has 27.5% stake in the business, various institutional investors, and the public.
How to buy KCB Group shares
KCB Group shares are listed on the Nairobi Securities Exchange under “KCB” ticker symbol. To be able to buy KCB Group shares, you’ll need to have a stock trading account called CDS account. You can open a CDS account with a stockbroker or an investment bank in Kenya.
Once you open a CDS account, decide the number of KCB shares you want to purchase, provide the broker or the bank with the money to buy the shares for you, and place your order.
Is KCB Group a good investment? KCB Group is one of the best companies to invest in Kenya for dividend. The group is massively profitable, has a strong balance sheet and a long history as a reliable dividend payer. In its 2020 report, The Banker ranked KCB Group among the strongest and profitable banks in Africa.