Access Bank PLC has signed a binding agreement to acquire 100% ownership of National Bank of Kenya (NBK) from KCB Group PLC, in a major deal that could reshape Kenya’s banking landscape.
The transaction, which remains subject to regulatory approvals, would see Nigeria’s Access Bank significantly increase its presence in the East African market by combining NBK with its existing Kenyan subsidiary.
“This 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,” said Roosevelt Ogbonna, Managing Director and CEO of Access Bank.
He added: “Trade flows in East Africa revolve around key trade corridors, with Kenya being a key player in the region. With the African Continental Free Trade Agreement, these corridors will continue to expand and by deploying our best-in-class financial solutions, we are strategically positioned to deliver sustainable value for our stakeholders.”
For KCB, the sale marks an exit from its four-year ownership of NBK, which it acquired in 2019 as part of a restructuring. KCB Group CEO Paul Russo portrayed the move as beneficial for shareholders.
“This transaction represents what we believe is a great opportunity to maximize value for our shareholders while strengthening the competitive position for the Group,” Mr Russo said. “The past four years have been defining for NBK as a KCB Group subsidiary and this step marks the opening of new opportunities.”
Upon completion, Access Bank plans to merge NBK into its existing Kenyan operations to create an enlarged banking franchise serving the region. Both banks stressed that all existing services for customers will continue seamlessly during the transition process.
“Stakeholders will benefit from an enlarged franchise, with best-in-class customer service and governance structures committed to empowering the communities wherein the Bank operates,” a joint statement read.
The deal underscores Access Bank’s ambitious expansion plans across Africa as it aims to become a leading pan-African financial services provider. With a presence in 10 African countries already, the acquisition of NBK would further cement its foothold in the economically vital East African Community trade bloc.
However, the transaction still faces regulatory hurdles, requiring approvals from central banks and competition authorities in Nigeria, Kenya and the COMESA region. All parties say they will work to fulfil these conditions in the coming months.
