Nigeria’s Access Bank is set to acquire full ownership of National Bank of Kenya (NBK) from Kenya Commercial Bank (KCB) after regulatory approvals from the Central Bank of Kenya, the Central Bank of Nigeria, the COMESA Competition Commission, and other relevant regulators.
Access Bank and KCB signed a binding agreement in Nairobi on Wednesday.
According to KCB Group CEO Paul Russo, “This transaction represents what we believe is a great opportunity to maximize value for our shareholders while strengthening the competitive position for the Group. The past four years have been defining for NBK as a KCB Group subsidiary and this step marks the opening of new opportunities.”
KCB — Kenya’s biggest bank — bought the National Bank of Kenya in 2019 and KCB says the deal was struck at 1.25 times book value though the deal was not disclosed.
Access Bank Plc MD Roosevelt Ogbonna said the deal is an important milestone for the bank and part of its five-year strategic plan to scale in the Kenyan market. NBK customers are not affected at the moment and will continue to access seamless services across various touchpoints including through the branch network and mobile banking platforms.
Access Bank, one of Nigeria’s biggest lenders, is not new in the Kenyan market as it acquired a 99.98 percent ownership stake in Transnational Bank for an estimated Sh1.5 billion in 2020 and tried to acquire Sidian Bank too though the deal failed.
“The transaction represents an important milestone for the Bank as it moves us closer to the achievement of our five-year strategic plan through increased scale in the Kenyan market,” Roosevelt Ogbonna, Managing Director/Chief Executive of Access Bank Plc said.
“We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, advance financial inclusion thereby empowering many to achieve their financial dreams,” Ogbonna added.