Access Bank Receives Full Approval to Acquire National Bank of Kenya

After a year of negotiations, Access Bank has finally received full regulatory approval to complete its purchase of the National Bank of Kenya (NBK) from KCB Group. The Central Bank of Kenya (CBK) and the National Treasury officially approved the deal, marking a major milestone in Access Bank’s expansion across East Africa.

Regulatory Approval Granted

In an official announcement, CBK Governor Kamau Thugge confirmed that the acquisition was approved on April 4, 2025, under Kenya’s Banking Act. A few days later, on April 10, Treasury Cabinet Secretary John Mbadi also gave his approval, clearing the final hurdle for the transaction.

This approval comes exactly one year after Access Bank first announced its plan to buy NBK in March 2024. At the time, the Nigerian bank explained that the acquisition would help it strengthen its presence in Kenya and take advantage of growing trade opportunities in East Africa.

Why KCB Decided to Sell NBK

KCB Group, Kenya’s second-largest bank, originally acquired NBK in 2019 as part of a government-backed rescue plan. At the time, NBK was struggling financially, and KCB stepped in to save it. Initially, KCB had planned to keep NBK for the long term.

However, banking experts believe that KCB’s decision to sell now may be due to financial pressures. Eric Musau, a research analyst at Standard Investment Bank in Nairobi, said that tighter banking regulations and declining capital ratios in recent years likely forced KCB to reconsider its strategy.

Details of the Deal

Under the agreement, Access Bank will buy 100% of NBK at 1.25 times its book value. KCB Group CEO Paul Russo confirmed that the sale process is expected to be completed within the next six to nine months.

The announcement of the deal has already had a positive impact on KCB’s stock, with shares rising by 9.9% as investors welcomed the move.

Access Bank’s Growing Footprint in Kenya and Africa

This is not Access Bank’s first acquisition in Kenya. In 2019, the Nigerian lender also bought Transnational Bank, a smaller financial institution. However, the purchase of NBK is much more significant because NBK is a well-established bank with a strong customer base.

Access Bank has been aggressively expanding across Africa in recent years. The bank has set a goal to double its international assets by 2027, reducing its reliance on the Nigerian market. This strategy is partly driven by increasing competition from fintech companies and other banks in Nigeria.

Expansion Across East and Southern Africa

The acquisition of NBK is part of Access Bank’s broader plan to grow in East Africa. The bank has also been expanding in other key markets, including:

• Democratic Republic of Congo (DRC) – Access Bank has been increasing its operations in the DRC, one of Africa’s fastest-growing economies.
• Rwanda – The bank is strengthening its presence in Rwanda’s growing financial sector.
• Uganda – Earlier this year, Access Bank acquired a stake in Uganda’s Finance Trust Bank.
• Tanzania – The bank is in the process of buying a controlling share in African Banking Corporation of Tanzania.
• South Africa, Botswana, Mozambique, and Angola – Access Bank has already acquired banks in these countries, including Grobank, BancABC, and Finibanco Angola.

Additionally, Access Bank recently purchased Standard Chartered Bank’s consumer, private, and business banking operations in another African country (name not specified in the original article).

What This Means for Customers and Employees

For NBK customers, the transition to Access Bank is expected to be smooth. Access Bank has experience in integrating acquired banks and usually retains staff while upgrading technology and services. Customers can expect better digital banking solutions and possibly more loan products.

For employees, there may be some restructuring, but Access Bank typically keeps most staff and provides training to align them with its operations.

Statements from Both Banks

Roosevelt Ogbonna, CEO of Access Bank, said: “This transaction is a major step in our five-year strategic plan. Acquiring NBK gives us a stronger position in Kenya, which is a key market for our African expansion.”

Meanwhile, KCB Group CEO Paul Russo explained why they decided to sell: “After careful consideration, we concluded that selling NBK to Access Bank was the best way to protect its value and ensure its future growth.”

What’s Next?

With all approvals now in place, Access Bank will begin the final stages of the acquisition. Over the next six to nine months, the bank will work on merging systems, rebranding branches, and communicating changes to customers.

This deal confirms Access Bank’s ambition to become one of Africa’s top banking groups. For Kenya, it means more competition in the banking sector, which could lead to better services and products for customers.

Round Up

The acquisition of NBK by Access Bank is a major development in Africa’s banking industry. It shows how Nigerian banks are expanding across the continent, while Kenyan banks like KCB are making strategic decisions to focus on their core markets.

For customers, this could mean more innovative banking solutions. For investors, it signals confidence in Kenya’s economy and the future of African banking.

As Access Bank continues its expansion, more deals like this could follow in other African countries.