Co-op Bank to rebrand as holding company in major overhaul

Co-operative Bank of Kenya is set to undertake a sweeping corporate restructuring that will see it transition into a non-operating holding company and adopt a new name, CO-OPBANK GROUP PLC.

The bank’s board approved the shift to a Non-Operating Holding Company (NOHC) model, a move that will separate its core banking operations from the broader group structure.

Under the new arrangement, a newly formed entity, Co-op Bank Kenya Ltd, will handle the banking business in Kenya, while the listed parent company will oversee subsidiaries and regional investments.

Group Managing Director and CEO Gideon Muriuki said the reorganisation is central to the bank’s long-term growth ambitions.

“The new structure positions the Group for sustainable growth, improved oversight and enhanced stakeholder value,” he said.

The restructuring aligns with provisions under the Banking Act and guidelines issued by the Central Bank of Kenya.

It will also require approvals from shareholders and the Capital Markets Authority at the lender’s Annual General Meeting slated for May 2026.

The rebrand comes at a time when the bank is riding on strong financial performance. For the year ended December 2025, the lender posted a record pre-tax profit of Sh40.3 billion, marking a 15.8 percent increase compared to the previous year. Total assets grew to Sh827.4 billion, reinforcing its position among the region’s largest financial institutions.

Under the new structure, the Group will continue to house its expanding portfolio of subsidiaries, including Kingdom Bank, Co-optrust Investment Services, Co-op Bancassurance Intermediary, Kingdom Securities and Co-op Bank of South Sudan. It also maintains strategic stakes in CIC Insurance Group and Fleet Africa Leasing.

The bank’s network of more than 200 branches across Kenya, alongside its regional presence in South Sudan and a wide agency banking network, will now operate under a unified group framework designed to boost efficiency and unlock new growth opportunities.

In line with its robust earnings, the lender has proposed a dividend payout of Sh2.50 per share for the year, representing a 67 percent increase from 2024, signalling confidence in its future prospects as it transitions into the new corporate structure.