Access Bank, a prominent Nigerian financial institution with a significant market presence and a valuation of ₦1.01 trillion, is on the verge of acquiring the National Bank of Kenya (NBK), which is currently owned by the KCB Group. This strategic acquisition is pending the green light from two regulatory bodies in Kenya: the Central Bank of Kenya (CBK) and the Competitions Authority of Kenya (CAK).
The financial details of the acquisition have not been made public. However, in March, the KCB Group had disclosed its agreement to sell NBK at a rate of 1.25 times the bank’s book value. With NBK’s book value recorded at $79.77 million in the year 2023, the transaction is estimated to be in the ballpark of $100 million.
Joseph Kinyua, the Chairman of KCB Group, expressed optimism about the nearing completion of the acquisition process during the company’s semi-annual financial report presentation for the first half of 2024, which took place on a Wednesday. He indicated that the finalization of the deal is contingent on receiving the necessary regulatory consents, which they anticipate securing shortly. Kinyua assured stakeholders that further information regarding the subsequent phases of the acquisition would be communicated in the upcoming months.
Since KCB Group’s takeover of NBK in 2019, they have invested upwards of $60 million to ensure that NBK meets the minimum capital requirements set by the CBK. Following the acquisition, Access Bank is expected to further capitalize NBK to bolster its financial stability.
While Access Bank has not provided an official statement in response to inquiries, the acquisition process appears to be in its final stages. Paul Russo, the Chief Executive Officer of KCB Group, acknowledged the efforts of the NBK team, especially given the challenging market conditions and the uncertainties surrounding the ownership transition, yet maintaining commendable performance levels.
This acquisition is set to broaden Access Bank’s operational reach within Kenya and is anticipated to be finalized within the current year. This move marks Access Bank’s second acquisition in Kenya within a five-year span, following the purchase of Transnational Bank in 2020. With the inclusion of NBK’s extensive national network, Access Bank is poised to enhance its branch network, which currently stands at 22 locations.
