NCBA, backed by Kenya’s richest families, invests $5 million in cybersecurity

Timilehin Adejumobi -
Key Points
  • NCBA Bank is investing Ksh644 million ($5 million) to enhance cybersecurity and protect against rising cyber threats in Kenya.
  • Kenya's cybersecurity incidents surged 16.5% in recent months, with attacks targeting various sectors, notably ISPs and cloud services.
  • NCBA Group, a key East African financial player, boosts its regional presence with new acquisitions and trustee services, reporting a 4.65% profit increase.

NCBA Bank, a subsidiary of the NCBA Group, a leading financial services conglomerate controlled by some of Kenya’s wealthiest families, has announced a substantial investment of Ksh644 million ($5 million) to bolster its cybersecurity infrastructure.

This move reflects the bank’s proactive stance in addressing the growing cyber threats that have emerged over the past year. The funds will strengthen the bank's firewalls, aligning with a broader trend in Kenya, where increased cyber threats are driving up security measures.

Rising cybersecurity threats in Kenya

Recent data from the Communications Authority of Kenya (CA) highlights a sharp 16.5-percent rise in cybersecurity incidents, with reported cases reaching 1.1 billion from March to June 2024, compared to 971.4 million during the same period last year.

The CA noted that operating systems, database servers, web applications, remote access systems, and network devices were the most targeted. The ICT sector, especially Internet Service Providers (ISPs) and cloud services, faced a high volume of attacks, with significant impacts on their database servers and operating systems.

John Gachora, managing director of NCBA Bank, emphasized the importance of investing in infrastructure to combat these growing cyber threats. “We view this as a significant issue across the banking industry, making it crucial for us to establish robust defenses against such vulnerabilities,” Gachora stated.

Strengthening position and expanding reach

Headquartered in Nairobi, Kenya, NCBA Group is a non-operating holding company with subsidiaries in Tanzania, Rwanda, Uganda, and Côte d’Ivoire. Formed in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group, NCBA has solidified its position as a major player in East Africa’s financial sector.

Partially owned by prominent Kenyan families such as the Kenyattas, Meralis, and Ndegwas, NCBA Group is focused on enhancing its operations in Kenya and expanding regionally. The bank has recently acquired AIG Kenya Insurance Company Limited.

NCBA Group also launched trustee services, broadening its investment portfolio and solidifying its position as a leading financial provider in East Africa. For the first quarter of 2024, the bank reported a 4.65-percent increase in profit year-on-year, reaching Ksh5.3 billion ($40.1 million), reinforcing its role in the region's financial sector.