Access Bank to acquire National Bank of Kenya from KCB Group

KCB Group has agreed to sell its National Bank of Kenya (NBK) subsidiary to Nigeria’s Access Group. This move strengthens Access Bank’s footprint in the East African market.

The successful completion of the transaction is subject to approvals from regulators like the Central Bank of Kenya, the Central Bank of Nigeria, and the COMESA Competition Commission.

KCB Group CEO Paul Russo views the sale as an opportunity to maximize shareholder value while strengthening its competitive position.

KCB Group holds 1,432,130,033 ordinary shares comprising 97.17% of the total issued share capital of NBK.

“The past four years have been defining NBK as a KCB Group subsidiary, and this step marks the opening of new opportunities,” said Russo.

“As you will recall, in 2019, KCB Group took a bold decision and acquired 100% of the ordinary shares of the National Bank of Kenya. Regrettably, some significant legacy claims have eroded all the gains we have made that we had achieved,” KCB Group Chairman Dr. Joseph Kinyua said.

Access Bank to Acquire National Bank of Kenya for $100 Million

Access Bank has agreed to acquire the National Bank of Kenya (NBK) from KCB Group. The deal value is approximately $100 million. This figure is based on a multiple of 1.25 times NBK’s book value, which was reported at $79.77 million in 2023.

We are excited to announce our acquisition of National Bank of Kenya Limited, a subsidiary of KCB group, marking a significant milestone in our journey.

Our strengthened presence in Kenya provides more opportunities for trans-African trade and financial inclusion, fostering… pic.twitter.com/LkqlqhvRCO

— Access Bank Plc (@myaccessbank) March 21, 2024

Roosevelt Ogbonna, Managing Director of Access Bank Plc, emphasizes the acquisition as a significant step in their five-year plan.

He outlines their goals of building a strong presence in Kenya, supporting economic development, fostering African trade, and promoting financial inclusion.

“The Transaction is in furtherance of the bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market whilst serving as a regional hub for our East African bloc anchored by a solidified balance sheet,” Access Bank said in a statement filed on the Nigerian Exchange Limited (NGX), on Wednesday.

This is Access Bank’s second acquisition in Kenya after it acquired Transnational Bank Ltd. in 2019. The acquisition involved a KSh1.4 Billion payout which was described as ‘a gateway in East Africa’.

“The deal with NBK, a historically strong and well-known bank in Kenya with a balance sheet in excess of US$1.1 billion, presents a compelling opportunity to scale up our growth in the East African market,” Agbede said.

“We remain confident that our investments towards diversifying and strengthening the Bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups.”