As the UK bank Barclays announced its full year results, local markets were less interested in the numbers and more interested in the back story.
The rumour mill had already been churning for months that there would be a big shake-up.
More specifically there were murmurs, now of course confirmed, of a sale in Africa.
Our financial expert William Ondenge breaks it down for us.
What you need to know is that there are 3 entities:
- Barclays PLC
- Barclays Africa Group
- Barclays Kenya
PLC is Big Grandma, owning 62.3% of Barclays Africa Group. The group in turn is Big Momma, owning 68% of Barclays Kenya. With me so far?
Grandma (PLC), has decided Momma(Group) should take charge & prosper. By selling some shares & becoming a minority shareholder.
Momma, (Who has been doing pretty ok for herself) says “Aight! Cool!” Meanwhile, kiddie Barclays Kenya is still handling biz like a bawse.
That’s pretty much it. Grandma get to party in Europe, while Momma + Barclays Kenya get to work ensuring you and I prosper.
There’s only one place Barclays Kenya is going to. That’s the top. And they are taking you along with them!