Access Bank is set to acquire the National Bank of Kenya from the KCB Group, marking its second acquisition of a Kenyan bank in less than five years.

Access Bank Plans to Acquire National Bank of Kenya.
Access Bank Plans to Acquire National Bank of Kenya.

Following its purchase of Transnational Bank Limited in 2019, this marks the Nigerian lender’s second acquisition in Kenya.

Sunday Ekwochi, the Secretary of Access Holdings. Announced in a statement filed on the Nigerian Exchange Limited on Wednesday that the finalization of the deal depends. On regulatory approvals from the central banks of Kenya and Nigeria.

According to Tech Cabal, KCB Group’s CEO, Paul Russo. Announced that Access Bank will acquire the entire stake in a deal he considers beneficial for NBK’s future.

The statement says, “Access Holdings Plc (“Access Holdings”) announces today that its flagship subsidiary, Access Bank Plc (“Access Bank” or “the Bank”), has signed a binding agreement with Kenyan-based KCB Group Plc (“KCB”) to acquire all the issued share capital of National Bank of Kenya Limited (“NBK” or “the Target”) from KCB. (the Transaction) KCB is also the holding company of KCB Bank Ltd, Kenya’s largest commercial bank.”

Strategic Expansion and Regional Hub Development

The Transaction aligns with the Bank’s African expansion strategy and will strengthen its position as a key player in the Kenyan market. It will also establish it as a regional hub for our East African bloc, supported by a strengthened balance sheet.

In the coming months, the parties will collaborate to meet the conditions precedent for the Transaction. Including obtaining regulatory approvals from the Central Bank of Nigeria and the Central Bank of Kenya.

“After completing the Transaction, we plan to merge the Target with Access Bank Kenya Plc to form a larger franchise as part of our strategic goal for the Kenyan and East African markets,” stated Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc. “This acquisition proposal is a crucial milestone in realizing our five-year strategic plan. Which aims to establish the Bank as Africa’s Gateway to the World.”

“The agreement with NBK, a historically robust and renowned bank in Kenya boasting a balance sheet exceeding US$1.1 billion, offers a compelling chance to expand our presence in the East African market.

“We believe that our investments in diversifying and fortifying the Bank’s long-term earnings profile will yield substantial value for our shareholders, customers, and broader stakeholder communities.”

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