Access Bank has made a significant move in the Kenyan banking sector by acquiring the National Bank of Kenya (NBK) from the KCB Group.
This acquisition marks Access Bank’s second foray into the Kenyan market in less than five years, following its unsuccessful attempt to acquire Sidian Bank in 2023.
Paul Russo, CEO of KCB Group, expressed confidence in the deal, stating that Access Bank will acquire the entire stake in NBK, which he believes will be beneficial for NBK’s future.
“We are taking the necessary steps to ensure the success of the transaction. While it may take 6 to 9 months to finalize, we are providing a clear path forward for the institution and our employees,” Russo announced.
Access Bank’s previous acquisition of Transnational Bank in 2020 was aimed at expanding its presence in East Africa, and this latest move underscores the bank’s ambitious growth plans.
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“This transaction is a significant milestone for Access Bank, aligning with our five-year strategic plan to strengthen our position in the Kenyan market,” remarked Access CEO Roosevelt Ogbonna.
KCB Group, Kenya’s second-largest lender, had intervened to rescue the financially troubled NBK in 2019 with support from the National Treasury and the Central Bank of Kenya, leading to significant changes within NBK.
Since the acquisition, KCB has been working diligently to improve NBK’s capital reserves to meet regulatory standards and steer the bank toward profitability.
“KCB’s decision to acquire NBK in 2019 was strategic.
Despite facing challenges, including legacy claims, we remain committed to restoring NBK’s financial health,” commented Joseph Kinyua, Chairman of KCB Group.
