Access Bank is set to buy the National Bank of Kenya (NBK) from the KCB Group. This move marks its second purchase of a Kenyan bank in less than five years.
The acquisition follows a failed attempt to buy Sidian Bank in 2023.
Paul Russo, CEO of KCB Group, announced that Access Bank will purchase the entire stake in NBK. He believes this deal will benefit NBK’s future. It will take 6 to 9 months to finalise the transaction, ensuring a stable future for NBK and its employees.
Access Bank previously acquired Transnational Bank in 2020 to expand its presence in East Africa. Roosevelt Ogbonna, Access Bank’s CEO, sees this acquisition as a significant step toward achieving their five-year strategic plan in the Kenyan market.
KCB Group, the second-largest lender in Kenya, acquired NBK in 2019 to rescue the struggling bank. Since then, KCB has been working to strengthen NBK’s finances and return it to profitability.
Access Bank confirmed the acquisition of NBK from KCB Group for a price equivalent to 1.25 times NBK’s book value. This values NBK at around $100 million, based on its book value of $79.77 million in 2023. However, the final acquisition figure could differ from this estimate.
The transaction is subject to approval from regulators in Nigeria and Kenya and is expected to be completed within six to nine months.
Access Bank plans to leverage NBK’s nationwide network to expand its presence in Kenya, injecting additional capital into NBK to support its growth.
Since acquiring NBK, KCB Group has invested $63.5 million to meet regulatory capital requirements and improve the bank’s performance.
Both Access Bank and KCB Group are committed to fulfilling the conditions precedent for the acquisition, including obtaining regulatory approvals from the Central Bank of Nigeria and the Central Bank of Kenya.
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