Access Bank Nears Completion of National Bank of Kenya Acquisition

Access Bank, Nigeria’s largest lender by assets, is close to finalizing its acquisition of the National Bank of Kenya (NBK) from KCB Group, five months after the deal’s expected closure. The transaction, which has been in progress since 2023, is now awaiting final regulatory approval from the Central Bank of Kenya (CBK), marking a key step in Access Bank’s ongoing pan-African expansion.

KCB Group CEO Paul Russo confirmed during the bank’s FY 2024 results announcement that the deal remains on track, with NBK’s financials already factored into KCB’s performance reports.

“We are at advanced stages of regulatory approval from both sides. I am very confident that we are at the tail,” Russo stated.

Strategic Expansion into East Africa

The acquisition of NBK will significantly enhance Access Bank’s presence in Kenya, East Africa’s largest economy and a major financial hub. Currently, Access Bank operates as a tier 3 lender in Kenya, ranking 37th out of 39 licensed banks. By integrating NBK—a tier 2 bank with 77 branches across 28 counties—Access Bank will strengthen its market position, while still holding a modest 1.9% share.

Kenya’s Competition Authority (CAK) had previously granted approval for the deal in October 2024, imposing conditions to ensure job retention. Access Bank must retain at least 80% of NBK’s 1,384 employees for a year and all 316 employees of its existing Access Bank Kenya subsidiary.

Financial and Market Implications

While the transaction’s exact value remains undisclosed, KCB had earlier indicated that NBK would be sold at 1.25 times its book value. Based on NBK’s 2023 book value of $79.77 million, this suggests a potential deal price of around $100 million.

For KCB, the sale aligns with a broader restructuring strategy but has impacted its financials. The group reported a KES 2.0 trillion ($15.4 billion) balance sheet, with a 10% decline in total assets attributed to currency fluctuations and the reclassification of NBK’s financials.

Access Bank’s acquisition of NBK reflects a broader trend of Nigerian banks expanding across Africa, seeking new growth opportunities amid local economic challenges. With regulatory approvals nearing completion, the deal could reshape Access Bank’s regional operations, positioning it for further growth in East Africa’s competitive banking sector.