Access Bank PLC and KCB Group PLC on Wednesday, March 20, 2024 signed a binding agreement to acquire 100 percent shares in National Bank of Kenya Limited (NBK) from KCB.
The successful transaction is subject to regulatory approvals from the Central Bank of Kenya, the Central Bank of Nigeria, the COMESA Competition Commission, and notifications to other relevant regulators.
Access Bank explained that this acquisition displays its commitment to a presence in Kenya and the broader East African region.
“Furthermore, the acquisition builds on the bank’s growing operations in the Democratic Republic of Congo, Rwanda, as well as its impending acquisitions of a majority stake in Uganda’s Finance Trust Bank Limited, the acquisition of majority equity stake in African Banking Corporation (Tanzania) Limited (“BancABC Tanzania”), and Standard Chartered Bank’s Consumer, Private & Business Banking business in Tanzania,” the bank said.
The Managing Director/Chief Executive of Access Bank Plc, Roosevelt Ogbonna, stated; “The transaction represents an important milestone for the bank as it moves us closer to the achievement of our five-year strategic plan through increased scale in the Kenyan market. We are building a strong and sustainable franchise to support economic prosperity, encourage Africa trade, advance financial inclusion thereby empowering many to achieve their financial dreams.
“Trade flows in East Africa revolve around key trade corridors, with Kenya being a key player in the region. With the African Continental Free Trade Agreement.”
In the same vein, the KCB Group CEO Paul Russo said; “This transaction represents what we believe is a great opportunity to maximise value for our shareholders while strengthening the competitive position for the Group. The past four years have been defining for NBK as a KCB Group subsidiary and this step marks the opening of new opportunities.”
Both banks said that with the transaction, all parties will be working together in the coming months to fulfil the requirements relating to the proposed acquisition.
The National Bank of Kenya Limited (NBK) is a commercial bank licensed and regulated by the Central Bank of Kenyan established since 1968.