Access Holdings expands in East Africa with the acquisition of National Bank of Kenya

Access Holdings, the parent body of Access bank, has announced plans to acquire the National Bank of Kenya. Access is buying the bank from Kenya’s KCB Group who incidentally bought the bank in a rescue deal engineered by the central bank in 2019.

This is the second bank acquisition in Kenya after the acquisition of Transnational Bank in 2020. In 2022, it entered an agreement to acquire Centum Investment Company Plc (‘Centum’) 83.4% stake in Sidian Bank Limited but it fell through

According to Sunday Ekwoche, Company Secretary, in a corporate disclosure on the NGX website; stated that “the transaction is in furtherance of the Bank’s African expansion strategy and will reposition it as a stronger and significant player in the Kenyan market whilst serving as a regional hub for our East African bloc anchored by a solidified balance sheet.”

In the upcoming months, the parties involved will collaborate to fulfill the conditions precedent linked to the Transaction. These conditions include obtaining regulatory approvals from the Central Bank of Nigeria and the Central Bank of Kenya. Following the completion of the Transaction, the Target entity will be merged with Access Bank Kenya Plc, aiming to form a larger franchise in alignment with our strategic objectives for the Kenyan and East African markets.

In response to the Transaction, Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, expressed, “This proposed acquisition represents a significant stride in the implementation of our five-year strategic plan, which aims to position the Bank as Africa’s Gateway to the World. The agreement with NBK, a well-established bank in Kenya boasting a balance sheet exceeding US$1.1 billion, presents a compelling opportunity to expand our presence in the East African market. We maintain confidence that our efforts to diversify and reinforce the Bank’s long-term earnings profile will generate substantial value for our shareholders, customers, and broader stakeholder community.”