Access Bank, Nigeria’s largest bank by assets, is close to finalizing the acquisition of National Bank of Kenya (NBK), a subsidiary of KCB Group, marking a pivotal step in its pan-African growth strategy. This acquisition, when completed, will significantly enhance Access Bank’s presence in Kenya, the region’s biggest economy and a key financial hub in East Africa.
KCB Group’s Chief Executive Officer, Paul Russo, confirmed that the deal is in its final stages of regulatory clearance. Speaking during KCB’s 2024 full-year results presentation, Russo expressed optimism about the transaction’s conclusion. “We are at advanced stages of regulatory approval from both sides. I am very confident that we are at the tail end,” he said.
The acquisition had been expected to close five months earlier, but regulatory processes delayed the timeline. Nevertheless, progress has been made. In October 2024, Kenya’s Competition Authority (CAK) approved the transaction, contingent upon Access Bank retaining at least 80% of NBK’s 1,384 employees for at least one year, and preserving all 316 employees of Access Bank Kenya, its local operation.
Lawrence Kimathi, KCB Group’s Chief Financial Officer, elaborated on the timeline adjustments, noting that while approvals from Nigeria’s Central Bank (CBN) have been secured, the final nod from Kenya’s Central Bank remains pending. “We extended the long stop date to February because we hadn’t obtained all the required approvals. Within that time, we secured approval from CBN, so we are only waiting for Kenya’s Central Bank. Access Bank has reaffirmed to our regulator their commitment to closing this transaction,” Kimathi stated.
KCB Group’s 2024 results reflected the implications of the pending sale. The group’s KES 2.0 trillion ($15.4 billion) balance sheet—currently the largest in the region—saw a 10% reduction in total assets, primarily due to the strengthening of the Kenyan shilling against regional currencies and the reclassification of NBK’s balances as part of the expected divestment. While loans grew by 10.5%, deposits dipped marginally by 0.1%, excluding NBK-related adjustments.
Although the final transaction value has not been publicly disclosed, KCB had earlier agreed to sell NBK at 1.25 times its book value, implying a price close to $100 million, based on NBK’s 2023 book value of approximately $79.77 million.
For Access Bank, which currently operates 23 branches in 12 counties in Kenya, the acquisition of NBK’s 77 branches across 28 counties represents a strategic move to deepen its footprint in the East African banking landscape. Despite this significant expansion, the merged entity is expected to control only 1.9% of Kenya’s banking market, a level that the competition authority deems too small to affect overall market dynamics dominated by major players such as Equity Bank, Co-operative Bank, and Standard Chartered.
Presently ranked 37th out of Kenya’s 39 licensed banks, Access Bank operates as a tier 3 lender, while NBK is classified as a tier 2 bank. The acquisition will thus elevate Access Bank’s status and provide a stronger platform for future growth and competitiveness in the region.
Once concluded, this acquisition will not only solidify Access Bank’s position in Kenya but also serve as a strategic milestone in its broader ambitions to become a leading pan-African bank. The integration of NBK’s operations is expected to enhance service delivery, widen customer reach, and foster economic partnerships across both countries.
