Access Bank secures conditional approval to acquire National Bank of Kenya
Joy Agwunobi
Access Bank has secured conditional approval from the Competition Authority of Kenya (CAK) for its planned acquisition of the National Bank of Kenya (NBK). This approval comes with key stipulations, including a requirement for Access Bank to retain at least 80 per cent of NBK’s workforce and all of its local employees for a minimum of one year after the deal is completed.
The acquisition was first announced in March 2024 when Kenya Commercial Bank (KCB), the parent company of NBK, disclosed that the transaction would take about six months to finalise. Although the exact financial details remain confidential, KCB indicated that the sale price is set at 1.25 times NBK’s book value, reports estimates place NBK’s book value at approximately $79.77 million in 2023, the deal could be valued around $100 million, with completion expected in November.
Pending approval from the Central Bank of Kenya (CBK), this acquisition represents a significant step in Access Bank’s strategy to expand its footprint in the East African financial market. Regulatory filings show that NBK currently employs 1,384 individuals, while Access Bank Kenya has a workforce of 316.
Once finalised, this merger will allow Access Bank to enhance its presence in Kenya, where it currently operates 23 branches across 12 counties. In comparison, NBK offers a variety of retail, corporate, and Islamic banking services through 77 branches in 28 counties. The integration of these two banks is expected to strengthen Access Bank’s operations in Kenya, which is East Africa’s largest economy.
This acquisition is not only a strategic move to bolster Access Bank’s influence in the region but also an opportunity to leverage NBK’s established customer base and diverse service offerings. According to CAK, as of December 2023, Access Bank Kenya was classified as a tier-three bank, holding a 0.2 per cent market share and ranking 37th among 39 banks in the country, Access Bank’s market share is projected to rise to 1.9 per cent.
The merger will significantly increase Access Bank’s branch network, incorporating all 77 of NBK’s locations into its operations. Additionally, the acquisition includes NBK Bancassurance Intermediary Limited, NBK’s insurance subsidiary, allowing Access Bank to expand its service offerings in Kenya to include insurance products.
Overall, this acquisition highlights Access Bank’s ambitious growth strategy across Africa. The bank has a track record of aggressive expansion, having previously acquired Transnational Bank in 2019, which now operates as Access Bank Kenya.