Nigeria’s biggest lender Access Bank Plc has acquired 100 percent of Transnational Bank Ltd effective February 1, 2020, the Central Bank of Kenya confirmed.
“This follows CBK’s approval on December 24, 2019, under Section 13 (4) of the Banking Act and approval by the Cabinet Secretary, National Treasury on January 6, 2020, for the acquisition under Section 9 of the Banking Act,” said the Central Bank in a statement Friday.
“The acquisition is expected to strengthen the resilience of Kenya’s banking sector,” it said.
Access Bank Plc’s business model mainly focuses on corporate and retail banking and its strong group support is expected to drive Transnational Bank Plc’s business growth for the benefit of the Kenyan economy and the banking sector.
Access Bank joins other Nigerian lenders Guaranty Trust Bank Ltd. and United Bank of Africa Plc in operating in the Kenyan market.
It operates in 7 subsidiaries within West Africa, East Africa, and the United Kingdom. The Bank also has business offices in the Republic of China, Lebanon, the United Arab Emirates, and India.
Access Bank plans to expand to Cameroon, Mozambique and Sierra Leone this year following the acquisition, the bank’s spokesman said.
Transnational Bank Plc commenced operations in December 1985. Currently, the bank has twenty-eight (28) branches (including the head office) across the country.
Kenya’s banking sector has witnessed an increased mergers and acquisition activity over the last 4 years.
NIC Group Plc and Commercial Bank of Africa Ltd completed its merger on 1st October 2019 to form NCBA Group Plc, a Non-Operating Holding Company.
SBM Holdings Ltd. of Mauritius acquired some of the assets of Chase Bank Kenya Ltd through its subsidiary SBM Bank.