The Kenyan government is moving forward with its privatization agenda, announcing the sale of the Development Bank Kenya (DBK).
This comes just weeks after the Cabinet approved the transfer of ownership from the public to private hands.
The Privatisation Authority is taking the lead role in this process, inviting proposals from consulting firms to guide the sale.
These consultants will be tasked with crafting a detailed plan leading to the public tender of DBK shares.
"The Privatisation Authority has set aside funds in its budget or has received financing from the National Treasury and Planning towards the cost of the subject consulting services," the Authority stated in a request for proposals.
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The decision to privatize DBK follows its successful transition into a fully-fledged commercial bank, now regulated by the Central Bank of Kenya (CBK).
Previously, DBK operated as a development finance institution relying on government guarantees.
However, the Cabinet dispatch noted DBK was ready to stand on its own as a deposit-taking commercial bank."
Financial records for the fiscal year ending June 30th, 2023, show positive signs for DBK.
The bank reported a net profit of Sh48.99 million, an increase from the previous year's Sh28.4 million.
Additionally, total assets climbed to Sh17.9 billion from Sh16.9 billion, and the loan book expanded to Sh9.6 billion from Sh8.7 billion.
The government has yet to disclose the specific method of sale.
Depending on DBK's final financial evaluation, they may opt for a listing on the Nairobi Securities Exchange or seek a strategic investor through private negotiations.
