Finally, Access Bank Secures Govt Approval To Take Over National Bank of Kenya
- Access Bank Plc has secured government approval to buy its rival in Kenya, the National Bank of Kenya
- The approval was granted by Kenya’s Treasury, Central Bank, and Competition Authority, marking Access Bank's expansion move in East Africa’s banking sector
- Affected employees will continue working for the bank for at least one year after the acquisition is finalised
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Access Bank (Kenya) Plc has secured permission to complete the acquisition of the National Bank of Kenya (NBK).
Kamau Thugge, Central Bank of Kenya (CBK) Governor, confirmed that CS John Mbadi has approved the transaction in a gazette notice dated April 11, 2025.
Source: UGC
The CBK approval now allows Access Bank to take over 100% of NBK’s shareholding, previously held by Kenya Commercial Bank (KCB) Group.
The deal includes NBK’s insurance arm, NBK Bancassurance Intermediary Limited, the Kenyan Times reports.
According to the CBK, National Treasury Cabinet Secretary (CS) John Mbadi gave his nod under Section 9(1) of the Banking Act, while the central bank itself approved the transaction on April 4 under Section 13(4) of the same Act.
The deal is scheduled to be presented at Access Bank’s next annual general meeting.
The CBK notice stated:
“It is notified for information of the general public that pursuant to the provisions of Section 9(5) of the Banking Act, the Board of Directors of KCB Group PLC vide a resolution passed on March 20, 2024, approved the acquisition of 100 percent of the issued share capital of National Bank of Kenya Limited by Access Bank PLC as per the Share Purchase Agreement dated March 20, 2024.
“The transaction will be tabled at the next Annual General Meeting of shareholders.”
Access Bank set to take over Kenyan bank
The Competition Authority of Kenya (CAK) in October last year gave the green light for the transaction, having determined that it would not distort market competition.
To mitigate job losses, CAK attached conditions requiring Access Bank to retain at least 80% of NBK’s current workforce for at least one year post-acquisition.
The statement added:
“The transaction has been approved on condition that Access Bank Plc retains, for one (1) year following completion of the transaction, at least 80% of the target’s current workforce and all Access Bank (Kenya) Plc employees, its local subsidiary."
What to know about the two banks
Access Bank, one of the leading commercial banks, is listed on the Nigerian Stock Exchange and operates in Kenya through its local subsidiary, Access Bank (Kenya) Plc, a direct competitor to National Bank of Kenya (NBK).
Access Bank has branches across Africa and also operates outside the continent.
On the other hand, the NBK has been fully owned by KCB Group Plc since 2019.
KCB is publicly traded on the Nairobi Securities Exchange and is cross-listed in Tanzania, Uganda, and Rwanda.
The acquisition of NBK will expand Access Bank’s footprint in the East African market.
Access Bank's rounds of acquisitions across Africa
Access Bank's strategic expansion across Africa underscores its ambition to become a leading pan-African financial institution.
In East Africa, the bank has significantly bolstered its presence through acquisitions in Uganda, Tanzania, South Africa and Kenya.
In Uganda, Access Bank entered into a binding agreement in January 2024 to acquire an 80% stake in Finance Trust Bank, a lender renowned for its focus on women-led businesses.
This move aligns with the bank's commitment to promoting financial inclusion and supporting underserved demographics.
In Tanzania, Access Bank completed the acquisition of BancABC Tanzania in June 2024, rebranding it as Access Bank Tanzania.
This acquisition expanded the bank's footprint in the East African market, providing a broader platform for regional growth.
Furthermore, in October 2021, Access Bank Zambia entered into a binding commitment to acquire the entire issued ordinary share capital, assets, and liabilities of Cavmont Bank, another Zambian commercial bank.
This strategic move aimed to enhance Access Bank's service offerings and customer base in Zambia.
In 2024, Access Bank signed binding contracts to acquire the National Bank of Kenya, a subsidiary of the Kenya Commercial Bank Group.
The completion of this acquisition has further strengthened Access Bank's position in the East African banking sector.
Collectively, these acquisitions reflect Access Bank's strategic focus on expanding its regional presence, enhancing its service offerings, and contributing to the economic development of the African continent.
Access Bank reaches agreement to buy South African bank
Legit.ng also reported that Access Holdings Plc has announced that it has entered a binding agreement to acquire South Africa’s Bidvest Bank.
The deal was disclosed in a statement on the Nigerian Exchange (NGX) signed by Sunday Ekwochi, Access Holdings’ secretary.
Access Bank is expected to complete the acquisition in the second half of 2025, pending approval from regulators.
Once the deal is finalised, Bidvest Bank will merge with Access Bank's current South African subsidiary.
This article has been updated by head of business desk, Victor Enengedi, with additional information.
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Source: Legit.ng
