Access Bank has made a strategic move to acquire the National Bank of Kenya from the KCB Group, marking its second significant acquisition of a Kenyan bank in less than five years. This initiative follows a previous attempt to acquire Sidian Bank in 2023, which did not materialize.
Paul Russo, the CEO of KCB Group, expressed confidence in the deal, affirming that Access Bank will purchase the entirety of NBK’s stake. He highlighted the potential benefits this acquisition holds for NBK’s future trajectory.
“We are initiating the necessary steps to ensure the success of this transaction,” Russo stated optimistically. “Although it may take between 6 to 9 months to finalize, we are laying out a clear path forward for the institution and our employees.”
Access Bank’s previous acquisition of Transnational Bank in 2020 was aimed at expanding its footprint in the East African region. This latest move underscores the bank’s ambitious growth strategy.
“This transaction represents a significant milestone for Access Bank, in line with our five-year strategic plan to strengthen our presence in the Kenyan market,” commented Access Bank CEO Roosevelt Ogbonna.
KCB Group, the second-largest lender in Kenya, stepped in to rescue the financially struggling NBK in 2019 with backing from the National Treasury and the Central Bank of Kenya. This intervention led to substantial changes within NBK.
Since the acquisition, KCB has been actively working to enhance NBK’s capital reserves to meet regulatory standards and steer the bank towards profitability.
“KCB’s decision to acquire NBK in 2019 was a strategic one,” remarked Joseph Kinyua, Chairman of KCB Group. “Despite facing challenges, including legacy claims, we remain steadfast in our commitment to restoring NBK’s financial health.”
Source: ambusinessng
