Access Bank to Acquire National Bank of Kenya in Pursuit of African Expansion Strategy

Written by Deborah Oyinloye on March 20, 2024

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In a strategic move aimed at expanding its presence in Africa, Access Bank, a leading Nigerian Deposit Money Bank, has announced its plan to acquire the National Bank of Kenya from the KCB Group. This acquisition marks Access Bank’s second investment in a Kenyan bank in less than five years, following its purchase of Transnational Bank Limited in 2019.

The decision to acquire the National Bank of Kenya is aligned with the vision of the late co-founder and former Group Chief Executive Officer, Herbert Wigwe, who envisioned Access Bank’s growth and influence in the African banking sector.

The announcement, made by Access Holdings’ Secretary, Sunday Ekwochi, emphasizes the importance of regulatory approvals from the central banks of Kenya and Nigeria for the finalization of the deal. Paul Russo, CEO of KCB Group, expressed optimism about the transaction, highlighting the benefits it would bring to the future of the National Bank of Kenya.

Access Bank’s binding agreement with KCB Group Plc for the acquisition of the National Bank of Kenya is a strategic move to strengthen its position in the Kenyan market and establish itself as a significant player in the region. The acquisition will combine the operations of the National Bank of Kenya with Access Bank Kenya Plc, creating an enlarged franchise with a solidified balance sheet.

Ms. Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, emphasized the significance of the proposed acquisition in executing the company’s five-year strategic plan. She highlighted the National Bank of Kenya’s strong reputation and substantial balance sheet, stating that the acquisition presents a compelling opportunity for Access Bank to expand its growth in the East African market.

Access Bank remains committed to diversifying and strengthening its long-term earnings profile, to deliver significant value to shareholders, customers, and wider stakeholder groups. The acquisition of the National Bank of Kenya underscores Access Bank’s commitment to becoming Africa’s Gateway to the World and solidifies its position as a key player in the continent’s banking sector.