KCB Group has agreed to sell 100% of its struggling subsidiary, National Bank of Kenya Limited (NBK), to Nigeria’s Access Bank subject to regulatory approvals.
The deal is currently awaiting regulatory clearance from the Central Bank of Kenya, the Central Bank of Nigeria, the COMESA Competition Commission, and notifications to other relevant regulatory bodies.
“This transaction represents what we believe is a great opportunity to maximize value for our shareholders while strengthening the competitive position for the Group,” KCB Group chief executive Paul Russo said.
“The past four years have been defining for NBK as a KCB Group subsidiary and this step marks the opening of new opportunities,” he added.
KCB, which is the second-biggest lender in Kenya, acquired NBK, a medium-sized lender that was then controlled by the state in 2020, in a deal engineered by the Central Bank of Kenya (CBK).
If approved, the deal will expand Access Bank’s presence in Kenya.
The Nigerian lender has been aiming to increase its market share in Kenya since acquiring a 99.98% ownership stake in Transnational Bank for approximately Sh1.5 billion in 2020.
