Access Bank Secures Full Acquisition of National Bank of Kenya
Quote from Lawyer on April 12, 2025, 3:46 pmThe National Treasury has given its final approval for the 100% acquisition of the National Bank of Kenya (NBK) by Nigeria’s Access Bank PLC. This milestone follows endorsements from the Central Bank of Kenya (CBK) and the boards of both KCB Group and Access Bank, marking the culmination of a process that began with a binding agreement signed on March 20, 2024.
The deal, valued at approximately $100 million (based on NBK’s 2023 book value of $79.77 million at 1.25 times book value), will see NBK merge with Access Bank Kenya PLC to form a stronger franchise in Kenya and the East African market. The acquisition is part of Access Bank’s strategic plan to expand its footprint in the region, building on its earlier acquisition of Transnational Bank Limited in 2019.
For KCB Group, which acquired NBK in 2019, the sale allows the bank to refocus its resources while preserving the investments made in NBK over the years. Despite earlier challenges with NBK’s performance, KCB Group CEO Paul Russo has emphasized the deal’s potential to maximize shareholder value.
The transaction, now fully approved as of April 10, 2025, per the National Treasury’s gazette notice, is expected to enhance competition in Kenya’s banking industry, with the merged entity projected to hold a 1.9% market share.
Stay tuned for more updates as this deal reshapes the financial landscape in East Africa.
The National Treasury has given its final approval for the 100% acquisition of the National Bank of Kenya (NBK) by Nigeria’s Access Bank PLC. This milestone follows endorsements from the Central Bank of Kenya (CBK) and the boards of both KCB Group and Access Bank, marking the culmination of a process that began with a binding agreement signed on March 20, 2024.
The deal, valued at approximately $100 million (based on NBK’s 2023 book value of $79.77 million at 1.25 times book value), will see NBK merge with Access Bank Kenya PLC to form a stronger franchise in Kenya and the East African market. The acquisition is part of Access Bank’s strategic plan to expand its footprint in the region, building on its earlier acquisition of Transnational Bank Limited in 2019.
For KCB Group, which acquired NBK in 2019, the sale allows the bank to refocus its resources while preserving the investments made in NBK over the years. Despite earlier challenges with NBK’s performance, KCB Group CEO Paul Russo has emphasized the deal’s potential to maximize shareholder value.
The transaction, now fully approved as of April 10, 2025, per the National Treasury’s gazette notice, is expected to enhance competition in Kenya’s banking industry, with the merged entity projected to hold a 1.9% market share.
Stay tuned for more updates as this deal reshapes the financial landscape in East Africa.