Access Bank has received conditional approval from Kenya’s Competition Authority (CAK) to acquire the National Bank of Kenya (NBK) from KCB Group, marking a strategic leap for Access Bank in East Africa. As part of the approval, Access Bank must retain at least 80% of NBK’s workforce, along with all its own Kenyan employees, for one year post-acquisition.
This acquisition, pending the Central Bank of Kenya’s (CBK) endorsement, strengthens Access Bank’s East African presence. While the exact transaction value hasn’t been disclosed, estimates suggest the deal could reach around $100 million, based on NBK’s 2023 book value of approximately $79.77 million.
Expanding Reach Across Kenya
Currently, Access Bank operates 23 branches across 12 Kenyan counties. With NBK’s broader network of 77 branches in 28 counties, Access Bank gains a greater foothold in retail, corporate, and Islamic banking sectors across Kenya. This merger is expected to significantly boost Access Bank’s market reach in East Africa’s largest economy.
Before this acquisition, Access Bank’s Kenyan operations were classified as tier 3, ranked 37th among Kenya’s 39 licensed commercial banks. NBK, however, holds a stronger tier 2 position, which will help Access Bank expand its market share to an estimated 1.9%. This relatively modest share ensures minimal disruption to market competition, according to CAK’s assessment.
Beyond banking, the acquisition also includes NBK’s insurance subsidiary, NBK Bancassurance Intermediary Limited, adding an insurance component to Access Bank’s Kenyan offerings. The CAK’s conditions aim to protect employment, with Access Bank committed to retaining a majority of NBK employees for a year and offering fair compensation under Kenyan labor laws for any restructuring.
A Broader Expansion Vision
This acquisition aligns with Access Bank’s broader growth strategy across Africa. Having previously acquired Kenya’s Transnational Bank in 2019, Access Bank continues to expand aggressively throughout the continent. The Common Market for Eastern and Southern Africa (COMESA) Competition Commission had previously approved this merger in markets outside Kenya, passing the Kenyan segment to CAK for review.
As Access Bank integrates NBK’s established customer base, it aims to solidify its influence in East Africa. By expanding its service offerings and market reach, Access Bank positions itself to become a formidable player in the region’s financial landscape.
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