Access Bank PLC, a subsidiary of Nigeria’s Access Holdings PLC, has received the necessary regulatory approvals to acquire 100% shareholding of the National Bank of Kenya (NBK) from KCB Group PLC. This strategic move marks a significant milestone in Access Bank’s expansion into the East African market.
Regulatory Green Light
The acquisition has been approved by the Central Bank of Kenya (CBK) and Kenya’s National Treasury and Economic Planning. Additionally, the Competition Authority of Kenya (CAK) has granted conditional approval, stipulating that Access Bank must retain at least 80% of NBK’s workforce for a year post acquisition.
Strategic Expansion
This acquisition aligns with Access Bank’s five year strategic plan to become Africa’s Payment Gateway to the World. By integrating NBK’s 77 branches across 28 counties with Access Bank Kenya’s existing 23 branches in 12 counties, the bank aims to enhance its presence in Kenya and the broader East African region.
Roosevelt Ogbonna, Managing Director/Chief Executive of Access Bank PLC, stated, “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. We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, and advance financial inclusion”
Financial Details
The deal is valued at approximately $100 million, calculated at 1.25 times NBK’s book value of $79.77 million as of 2023. The transaction is expected to be finalized within the next six to nine months, subject to customary closing conditions.
Implications for the Kenyan Banking Sector
Upon completion, Access Bank will ascend from a tier-three to a tier-two lender in Kenya, increasing its market share from 0.2% to 1.9%. The acquisition also includes NBK’s insurance subsidiary, NBK Bancassurance Intermediary Limited, allowing Access Bank to expand its service offerings in Kenya to include insurance products.
