BusinessWorld/Foreign News

Access Bank to acquire another Kenyan bank

Access Bank is on the verge of acquiring the National Bank of Kenya (NBK), a subsidiary of KCB Group, years after acquiring Transnational Bank Kenya (TBK). Access is expected to buy out all of the company’s shares, which is a full acquisition.

This acquisition can only take place if the relevant Kenyan and Nigerian regulatory bodies give the go-ahead though.

Access Bank acquired TBK in 2020 to increase its market share in East Africa and strengthen its ambition to become the “World’s Most Respected African Bank.” As of September 2023, Access Bank was Nigeria’s third-largest bank, with a total equity of ₦1.208 trillion in the country.

The NBK acquisition means furthering the bank’s expansion strategy in Africa.

Acting Group CEO of Access Holdings Plc, Bolaji Agbede, commented on the acquisition, calling it a significant step forward in the group’s five-year strategic plan.

“We remain confident that our investments in diversifying and strengthening the bank’s long-term earnings profile will deliver significant value for our shareholders, customers, and wider stakeholder groups,” Agbede added.

KCB, one of Kenya’s largest lenders, acquired NBK in 2019. However, the Group Chairman, Joseph Kinyua, said in a report, “In 2019, KCB made the bold decision to acquire the National Bank of Kenya. Unfortunately, some significant legacy claims have eroded all the gains we have made in National Bank.”

According to Kinyua, only NBK saw a drop from 2022 to 2023 among the group’s subsidiaries.

“The sale of NBK to Access will allow the investments KCB has put in the business over the last four years to be preserved,” the Kinyua added.

(Techpoint Africa)

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