Co-operative Bank of Kenya has signalled plans to expand into new markets and appoint a separate CEO to lead its banking unit in the country following creation of a holding company and a new subsidiary for its core banking operations.
The Nairobi Securities Exchange-listed bank said on Tuesday that it has received approval by its board for a new structure that will see the Co-operative Bank of Kenya Limited renamed as Co-op Bank Group Plc and a new banking business subsidiary, Co-op Bank Kenya Limited, created.
Co-op Bank Group Plc will be a non-operating holding company, while Co-op Bank Kenya Limited will be the unit dedicated to banking operations in Kenya.
The new model awaits approval from shareholders, the Central Bank of Kenya, the Capital Markets Authority, and other regulatory agencies.
The changes set the stage for the banking unit to be headed by a separate CEO from Gideon Muriuki, who is currently the CEO and Managing Director of Co-op Bank of Kenya. Mr Muriuki said the new model will ‘synergize the group operations for further growth and expansion.’
The model also signals plans by the lender to diversify outside the country beyond South Sudan and take on its peers such as CB Group and Equity Group.
Both KCB and Equity changed their work structures before expanding to regional markets.
‘The Co-operative Bank of Kenya Ltd will be renamed as Co-opBank Group PLC as a non-operating holding company that will own all the group operations and will remain as the listed entity at the Nairobi Securities Exchange,’ said Mr Muriuki in a statement Tuesday.
‘This group model alignment provides a strong foundation for sustainable growth, improved governance, and enhanced stakeholder value; notably, it is a scalable platform for expansion into diversified financial services and other regional markets,’ said Mr Muriuki.
Both KCB and Equity changed their work structures before expanding to regional markets.
The proposed structure comes on the back of the lender launching a 2025-2029 strategic plan, which targets to grow the asset size above Sh1 trillion.
The lender closed December last year with an asset base of Sh827.4 billion, a 11.3 percent rise from the Sh743.3 billion it held in the previous year.
Co-op was established in 1968 and converted into a full-fledged commercial bank in 1994, opening doors to other customers beyond co-operatives. The lender was listed on the NSE in 2008.
The lender owns a 51 percent stake in Co-operative Bank of South Sudan-the only operation it has outside Kenya.
Co-op also fully owns Co-op Bancassurance Intermediary and Co-optrust Investments Services, a 90 percent stake in Kingdom Bank, 60 percent in Kingdom Securities, 33.41 percent in Co-operative Insurance Society, and 25 percent in Co-op Bank Fleet Africa Leasing.
The lender is set to hold its annual general meeting next month, where investors are expected to endorse payment of a final dividend of SSh1.50 per share. This will add to the interim dividend of Sh1 already paid, marking a 67 percent rise in total payout.
Co-op raised its dividend per share for the first time in four years after net profit for the financial year ended December 2025 rose by 16.9 percent to Sh29.75 billion on increased interest income.