NCBA Bank, a subsidiary of the NCBA Group, a renowned financial services conglomerate owned by some of Kenya’s wealthiest families, has announced a significant investment of Ksh644 million ($5 million) to strengthen its cybersecurity.
This move reflects the bank’s proactive approach to addressing the growing cyber threats that have emerged over the last year. The monies will be used to reinforce the bank’s firewalls, which is consistent with a larger trend in Kenya, where rising cyber threats are driving up security measures.
According to recent data from the Communications Authority of Kenya (CA), cybersecurity incidents increased by 16.5 percent between March and June 2024, with recorded cases reaching 1.1 billion, up from 971.4 million the previous year.
The CA reported that operating systems, database servers, online applications, remote access systems, and network devices were the most commonly targeted. The ICT sector, particularly Internet Service Providers (ISPs) and cloud services, experienced a large volume of attacks, which had a severe impact on their database servers and operating systems.
NCBA Bank’s managing director, John Gachora, underlined the significance of investing in infrastructure to tackle the growing cyber threat. “We view this as a significant issue across the banking industry, making it crucial for us to establish robust defenses against such vulnerabilities,” he said.
NCBA Group, based in Nairobi, Kenya, is a non-operating holding company having subsidiaries in Tanzania, Rwanda, Uganda, and Côte d’Ivoire. NCBA was formed in 2019 by the merging of NIC Bank Group and Commercial Bank of Africa Group, and it has since established itself as a prominent participant in East Africa’s banking sector.
NCBA Group, which is owned in part by famous Kenyan families such as the Kenyattas, Meralis, and Ndegwas, is focused on increasing its business in Kenya and regionally. The bank just bought AIG Kenya Insurance Company Limited.
NCBA Group also launched trustee services, increasing its investment portfolio and establishing itself as East Africa’s premier financial provider. In the first quarter of 2024, the bank’s profit increased by 4.65 percent year on year to Ksh5.3 billion ($40.1 million), highlighting its importance in the region’s financial industry.