The Competition Authority of Kenya (CAK) has approved Access Bank’s acquisition of the National Bank of Kenya (NBK) from KCB Group, contingent on the new owners retaining 80% of NBK’s employees for at least one year. This condition ensures job stability during the transition. The Central Bank of Kenya (CBK) must still greenlight the transaction, which is expected to conclude by November 2024.
KCB Group acquired NBK in 2019, but despite various restructuring efforts, the bank struggled with non-performing loans and capital challenges. This acquisition is part of Access Bank’s strategy to expand its East African operations, which aligns with its ongoing mergers and acquisitions across Africa, including in South Africa, Mozambique, and Botswana
NBK’s workforce of 1,384 employees and Access Bank Kenya’s 316 employees will be merged under the new entity. The acquisition will expand Access Bank’s operations from 23 branches across 12 counties to 100 branches spanning 28 counties, increasing its market footprint and enhancing service delivery. The newly merged entity will operate within a tier-2 classification, with CAK estimating the combined market share to be 1.9%, a level unlikely to disrupt industry competition
KCB Group announced that NBK would be sold at 1.25 times its book value, which implies a deal valued at approximately $100 million, based on NBK’s 2023 book value of $79.77 million. Once finalized, the acquisition will strengthen Access Bank’s position within Kenya’s banking ecosystem as it pursues growth in both corporate and retail banking segmen