NIC Bank
Encyclopedia
NIC Bank, whose full name is National Industrial Credit Bank, is a commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...

 in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

. It is one of the forty-four (44) commercial banks licensed by the Central Bank of Kenya
Central Bank of Kenya
The Central Bank of Kenya is Kenya's central bank. The bank is located in Nairobi. The current governor of the bank is Professor Njuguna Ndungu whose appointment took effect from March 4, 2007...

, the country's banking regulator.

Overview

NIC Bank is a large financial services provider in East Africa
East Africa
East Africa or Eastern Africa is the easterly region of the African continent, variably defined by geography or geopolitics. In the UN scheme of geographic regions, 19 territories constitute Eastern Africa:...

. Headquartered in Nairobi
Nairobi
Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...

, Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

, he bank owns subsidiary companies in Kenya and a controlling interest (51% shareholding), in NIC Bank Tanzania
NIC Bank Tanzania
National Industrial and Commercial Bank Tanzania Limited, commonly known as NIC Bank Tanzania , and formerly known as Savings and Finance Commercial Bank , is a commercial bank in Tanzania. It is one of the twenty-nine licensed commercial banks in the country.-Overview:NIC Bank Tanzania is a small...

, a commercial bank in neighboring Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...

. , NIC Bank's asset base was valued at over US$706 million (KES:59 billion), with shareholder's equity of over US$88 million.

History

The bank was founded in 1959 as a joint venture by Standard Bank Limited and Mercantile Credit Company Limited, both headquartered in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 at that time. NIC was initially a non-bank financial institution
Non-bank financial institution
A non-bank financial institution is a financial institution that does not have a full banking license or is not supervised by a national or international banking regulatory agency. NBFIs facilitate bank-related financial services, such as investment, risk pooling, contractual savings, and market...

 (NBFI). In 1971, NIC became a public company, by listing on the Nairobi Stock Exchange
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...

, where it still trades today under the symbol: NNIC.

In 1995, the Central Bank of Kenya
Central Bank of Kenya
The Central Bank of Kenya is Kenya's central bank. The bank is located in Nairobi. The current governor of the bank is Professor Njuguna Ndungu whose appointment took effect from March 4, 2007...

 required all NBFIs in the country to either convert to fully fledged commercial banks or close shop. NIC applied for and was granted a banking license that same year. In 1997, NIC Bank merged with African Mercantile Bank Limited (AMBank), a Kenyan financial institution. In May 2009, NIC Bank acquired a 51% shareholding interest in Savings and Finance Commercial Bank
Savings and Finance Commercial Bank
Savings and Finance Commercial Bank , commonly referred to as S&F Commercial Bank, or simply as S&F Bank, is a commercial bank in Tanzania. The bank also sometimes goes by the names: Savings and Financial Commercial Bank, Savings and Finance Bank or simply Savings and Finance...

, a small Tanzanian retail bank with approximately US$30 million in assets and approximately US$5 million in shareholder's equity at the time. , Savings and Finance Commercial Bank
Savings and Finance Commercial Bank
Savings and Finance Commercial Bank , commonly referred to as S&F Commercial Bank, or simply as S&F Bank, is a commercial bank in Tanzania. The bank also sometimes goes by the names: Savings and Financial Commercial Bank, Savings and Finance Bank or simply Savings and Finance...

 has rebranded to NIC Bank Tanzania
NIC Bank Tanzania
National Industrial and Commercial Bank Tanzania Limited, commonly known as NIC Bank Tanzania , and formerly known as Savings and Finance Commercial Bank , is a commercial bank in Tanzania. It is one of the twenty-nine licensed commercial banks in the country.-Overview:NIC Bank Tanzania is a small...

.

In November 2011, Kenyan press reports indicated that NIC Bank was in advanced stages of opening a banking subsidiary in neighboring Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...

.

NIC Group

NIC Bank together with its subsidiaries, which it owns, either wholly or partially, form the NIC Group of Companies or the NIC Group. Members of the group include:
  1. NIC Bank - Retail banking - Nairobi
    Nairobi
    Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...

    , Kenya
    Kenya
    Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

       100% Shareholding
  2. NIC Capital - Investment banking - Nairobi
    Nairobi
    Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...

    , Kenya
    Kenya
    Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

       100% Shareholding
  3. NIC Capital Securities - Securities brokerage - Nairobi
    Nairobi
    Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...

    , Kenya
    Kenya
    Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...

       - 100% Shareholding
  4. NIC Bank Tanzania
    NIC Bank Tanzania
    National Industrial and Commercial Bank Tanzania Limited, commonly known as NIC Bank Tanzania , and formerly known as Savings and Finance Commercial Bank , is a commercial bank in Tanzania. It is one of the twenty-nine licensed commercial banks in the country.-Overview:NIC Bank Tanzania is a small...

     - Retail banking - Dar es Salaam
    Dar es Salaam
    Dar es Salaam , formerly Mzizima, is the largest city in Tanzania. It is also the country's richest city and a regionally important economic centre. Dar es Salaam is actually an administrative province within Tanzania, and consists of three local government areas or administrative districts: ...

    , Tanzania
    Tanzania
    The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...

       51% Shareholding
  5. NIC Bank Uganda - Retail banking - Kampala
    Kampala
    Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...

    , Uganda
    Uganda
    Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...

       (Coming soon)

Ownership

The stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...

 of NIC Bank is listed on the Nairobi Stock Exchange
Nairobi Stock Exchange
The Nairobi Securities Exchange is the principal stock exchange of Kenya. It began in 1954 as an overseas stock exchange while Kenya was still a British colony with permission of the London Stock Exchange. The NSE is a member of the African Stock Exchanges Association...

, where it trades under the symbol: NINC. The detailed shareholding in the company stock is not widely known at this time.

Board of directors

The activities of NIC Bank are directed by a ten-person Board of Directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

. J.P.M.Ndegwa, one of the non-Executive directors, serves as Chairman.

Management

James Macharia is the Managing Director of the bank. He is assisted by seven (7) other Senior Managers in supervising the day-to-day activities of NIC Bank.

Branch Network

The bank maintains branches at the following locations:
  1. Main Branch - NIC House, Masaba Road, Nairobi
    Nairobi
    Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...

  2. NIC House Service Centre – Masaba Road, Nairobi
  3. City Centre Branch - Prudential Building, Wabera Street, Nairobi
  4. Harambee Avenue Branch - Jeevan Bharat Building, Harambee Avenue, Nairobi
  5. 20th Century Service Centre – Mama Ngina Street, Nairobi
  6. Westlands Branch - Westlands Mall - Westlands
    Westlands
    Westlands is a neighborhood in the city of Nairobi, the capital and largest city in Kenya.-Location:Westlands is located , by road, northwest of the central business district of Nairobi...

    , Nairobi
    Nairobi
    Nairobi is the capital and largest city of Kenya. The city and its surrounding area also forms the Nairobi County. The name "Nairobi" comes from the Maasai phrase Enkare Nyirobi, which translates to "the place of cool waters". However, it is popularly known as the "Green City in the Sun" and is...

  7. Junction Branch - Ngong Road, Nairobi
  8. Prestige Plaza Branch – Ngong Road, Nairobi
  9. Harbour House Branch – Moi Avenue, Mombasa
    Mombasa
    Mombasa is the second-largest city in Kenya. Lying next to the Indian Ocean, it has a major port and an international airport. The city also serves as the centre of the coastal tourism industry....

  10. Nkrumah Road Branch - NSSF Building, Nkrumah Road, Mombasa
  11. Nyali Branch – Nakumatt Complex, Nyali, Mombasa
  12. Nakuru Branch - Vickers Building, Kenyatta Avenue, Nakuru
    Nakuru
    Nakuru, the provincial capital of Kenya's Rift Valley province, with roughly 300,000 inhabitants, and currently the fourth largest urban centre in the country, lies about 1850 m above sea level...

  13. Thika Branch - Thika Arcade, Kenyatta Avenue, Thika
    Thika
    Thika is an industrial town in Central Province, Kenya, lying on the A2 road 40 km north east of Nairobi, near the confluence of Thika River & Chania River. Thika has a population of 200,000and is growing rapidly, as is the entire greater Nairobi area...

  14. Kisumu Branch - Oginga Odinga Street, Kisumu
    Kisumu
    Kisumu is a port city in western Kenya at , with a population of 355,024 . It is the third largest city in Kenya, the principal city of western Kenya, the immediate former capital of Nyanza Province and the headquarters of Kisumu County. It has a municipal charter but no city charter...


External links


See also

  • List of banks in Kenya
  • List of banks in Africa
  • Central Bank of Kenya
    Central Bank of Kenya
    The Central Bank of Kenya is Kenya's central bank. The bank is located in Nairobi. The current governor of the bank is Professor Njuguna Ndungu whose appointment took effect from March 4, 2007...

  • Economy of Kenya
    Economy of Kenya
    Kenya's economy is market-based, with a few state-owned infrastructure enterprises, and maintains a liberalized external trade system. The country is generally perceived as Eastern and central Africa's hub for Financial, Communication and Transportation services...

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