Kelvin Bowoto
Access Bank will buy the National Bank of Kenya (NBK) from the KCB Group, marking its second acquisition of a Kenyan bank in less than five years. The transaction follows a failed attempt to acquire Sidian Bank in 2023.
According to KCB Group CEO Paul Russo, Access Bank will purchase the full interest in a move that he believes will benefit NBK’s future.
“We begin the hard work to ensure that the transaction is successful. It will take 6 to 9 months to complete and cross the finish line, but we provide a foreseeable future for the institution and, particularly, our workers,” Russo declared.
Access purchased Transnational Bank in 2020 to increase its market share in East Africa, but its goals have grown since then.
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“The transaction represents an important milestone for the bank as it moves us closer to the achievement of our five-year strategic plan through increased scale in the Kenyan market,” Roosevelt Ogbonna, chief executive officer of Access Bank, said.
The second-largest lender in Kenya bought the loss-making NBK in 2019 through a rescue arrangement arranged by the National Treasury and the Central Bank of Kenya (CBK), ushering in a major shakeup.
Since the takeover, KCB has sought to restore the bank’s capital strength to the minimum levels permitted by the regulator and keep it on course for profitability.
“In 2019, KCB made the brave move to purchase the National Bank of Kenya. Unfortunately, some major legacy claims have erased all of our gains at National Bank,” stated Joseph Kinyua, chairman of KCB Group.
Techrectory with Agency Report.
