Nigeria’s largest commercial bank with a market capitalization of ₦1.01 trillion, Access Bank is on the verge of acquiring the National Bank of Kenya from the KCB Group.
The acquisition, which is pending final approval from the Central Bank of Kenya and the Competition Authority of Kenya, is expected to be finalized soon.
While the exact financial terms have not been disclosed, KCB Group previously announced that the sale would be based on 1.25 times NBK’s book value. With NBK’s book value recorded at $79.77 million in 2023, the deal is estimated to be valued at around $100 million.
Chairman of KCB Group, Joseph Kinyua, confirmed the deal’s progress during the company’s H1 2024 earnings call. “The process is nearing completion and is awaiting the necessary regulatory approvals. We expect to finalize the transaction soon and will communicate the next steps in the coming months,” Kinyua stated.
KCB Group initially acquired NBK in 2019 and has since invested over $60 million to ensure it meets CBK’s minimum capital requirements. With Access Bank poised to take over, the Nigerian lender is anticipated to inject additional capital into NBK.
CEO of KCB Group, Paul Russo, praised NBK’s team for maintaining performance amid the uncertainty surrounding the acquisition. “It’s not easy to perform in such a challenging environment, especially with the prospect of a transfer. The NBK team deserves special recognition for their efforts,” Russo said.
This acquisition marks Access Bank’s second venture into the Kenyan market in less than five years, following its acquisition of Transnational Bank in 2020. With NBK’s extensive nationwide network, Access Bank is set to significantly expand its presence in Kenya, increasing its branch network from the current 22 locations.
