Kenya’s central bank okays Access Bank’s takeover of National Bank

• Published On: 14 April 2025 at 19:19

The Central Bank of Kenya and the National Treasury have approved Nigerian lender Access Bank PLC's takeover of the troubled National Bank of Kenya, marking a significant milestone in the almost year-long acquisition process.

The decision, announced on Monday, moves Access Bank closer to completing its acquisition of 100% of NBK's issued share capital, a move that is expected to strengthen its footprint in East Africa's largest economy. The transaction is still pending final approval from Nigerian regulatory authorities.

According to a gazette announcement, CBK Governor Kamau Thugge approved the transaction on April 4, 2025, under Section 13(4) of the Banking Act. Treasury Cabinet Secretary John Mbadi later approved the deal on April 10, 2025.

The acquisition enables Access Bank to leverage NBK's statewide branch network and expand its presence in Kenya's competitive banking sector. A public announcement confirming the transaction's completion is likely to follow shortly.

While the actual financial facts remain unknown, KCB Group, which owns NBK, recently stated that it had agreed to sell the bank at 1.25 times its book value. Based on NBK's 2023 book value of $79.77 million, the transaction could be worth around $100 million, but the ultimate price may differ.

This is Access Bank's second foray into the Kenyan market, following its 2020 acquisition of Transnational Bank. The move reflects its broader pan-African expansion plan, which mirrors that of sister Nigerian banks United Bank for Africa and Guarantee Trust Bank.

Access Bank is likely to inject new money into NBK following the transaction to improve its balance sheet. Since taking over the loss-making bank in 2019, KCB Group has committed more than $63.5 million to stabilise its finances and steer it towards profitability.