Access Bank has moved to acquire the National Bank of Kenya from the KCB Group. This marks its second acquisition of a Kenyan bank in under five years after a move to acquire Sidian Bank fell through in 2023.
Paul Russo, CEO of KCB Group, expressed optimism about the deal, stating that Access Bank will purchase the entire stake, which he views as beneficial for NBK’s future.
“We are commencing the necessary steps to ensure the success of the transaction. While it may take 6 to 9 months to finalize, we are providing a clear path forward for the institution and our employees,” Russo announced.
Access Bank’s acquisition of Transnational Bank in 2020 aimed to expand its presence in the East Africa region, and this latest move underscores its growing ambitions.
“This transaction is a significant achievement for Access Bank, aligning with our five-year strategic plan to enhance our position in the Kenyan market,” remarked Access CEO Roosevelt Ogbonna.
KCB Group, Kenya’s second-largest lender, rescued the financially struggling NBK in 2019 with support from the National Treasury and the Central Bank of Kenya, initiating substantial changes within NBK.
Since the acquisition, KCB has been diligently working to bolster NBK’s capital reserves to meet regulatory requirements and steer it toward profitability.
“KCB’s decision to acquire NBK in 2019 was a strategic move. Despite facing challenges, including legacy claims, we remain committed to restoring NBK’s financial health,” commented Joseph Kinyua, Chairman of KCB Group.
