Access Bank PLC, a prominent Nigerian multinational commercial bank, is in the final stages of acquiring the National Bank of Kenya (NBK), pending regulatory approvals from the Central Bank of Kenya and the Competition Authority of Kenya.

This strategic move is a part of Access Bank’s five-year plan to expand its presence in Kenya and strengthen its position in the East African trade corridors, showcasing its commitment to the region’s banking industry.

The acquisition price, expected to be approximately $100 million, is calculated at 1.25 times NBK’s 2023 book value. This signifies Access Bank’s substantial investment in scaling its operations and footprint in Kenya.

Roosevelt Ogbonna, Managing Director/CEO of Access Bank, has emphasised that this acquisition will not only enhance the bank’s scale in Kenya but also support its broader vision of becoming Africa’s Payment Gateway to the World.

Upon completion of the transaction, NBK will be integrated with Access Bank Kenya Plc to form an enlarged franchise, leveraging Access Bank’s financial solutions to provide sustainable value for all stakeholders involved.

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This merger is anticipated to create a more extensive and stronger institution that is optimally positioned to cater to the needs of both the Kenyan and East African markets.

KCB Group CEO Paul Russo has expressed confidence that this transaction will not only maximise value for shareholders but also significantly cement the group’s competitive position in the region.

The move not only signifies Access Bank’s commitment to providing a full range of banking services but also ensures continuity for its stakeholders in Kenya.

National Bank of Kenya Limited, licensed as a commercial bank by the Central Bank of Kenya, has demonstrated exceptional financial performance with a reported profit after tax of KES 839 million in the first half-year of 2024.

This substantial recovery from a pre-tax loss recorded in the same period last year has been driven by a remarkable 20% increase in the bank’s net operating income to KES 6.6 billion.

The success is attributed to NBK’s successful revenue diversification strategy and operational efficiency improvements, highlighting the bank’s resilience and strong strategic focus.

Access Bank, a leading full-service commercial bank, operates through a network of over 700 branches and service outlets across 3 continents, spanning 21 countries and serving over 60 million customers.

The bank’s massive operational presence in Africa and Europe illustrates its commitment to provide comprehensive and innovative banking services to its diverse customer base.

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KCB Group Plc, East Africa’s largest commercial bank, has established a strong presence across various countries in the region. With the largest branch network in East Africa and a wide range of banking services, KCB Group represents a key player and a pillar in the region’s banking sector, contributing significantly to the financial landscape of East Africa.

The acquisition of National Bank of Kenya by Access Bank PLC represents a significant milestone in the banking industry and sets the stage for a more strong presence in the East African market.

This move has the potential to reshape the region’s banking landscape and drive increased competition and innovation, ultimately benefiting customers and stakeholders in the region.

As the transaction progresses, we anticipate substantial developments that will further highlight the impact of this acquisition on the East African banking sector.