Nigeria’s largest lender by assets, Access Bank Plc, is set to deepen in East Africa’s financial services industry after receiving the regulatory approval to acquire 100 percent stake in National Bank of Kenya (NBK), which is currently a subsidiary of KCB Group.

The landmark transaction, which was confirmed on Monday, April 14, by Central Bank of Kenya (CBK) Governor Dr. Kamau Thugge, marks a key step in Access Bank’s pan-African expansion strategy. CBK granted its nod on April 4, while the National Treasury approved the deal on April 10.

“As part of the transaction, CBK further approved the transfer of certain assets and liabilities of National Bank of Kenya Ltd to KCB Bank Kenya Ltd pursuant to section 9 of the Banking Act,” read a statement from the regulator.

The banking sector regulator noted that the acquisition would “ensure continued stability and enhance the resilience of the Kenyan banking sector."

Access Bank entered the Kenyan market in 2019 through the acquisition of Transnational Bank, setting up its presence in East Africa's largest economy. It later made an unsuccessful bid to acquire Sidian Bank from Centum Investments. The latest deal with NBKis, therefore, a strategic win that cements the bank’s position in the region.

The acquisition process has taken over a year, involving approvals from not just CBK and Treasury, but also Kenya’s Competition Authority and other regional antitrust bodies. Notably, Kenya’s competition watchdog stipulated that Access Bank must retain at least 80 percent of NBK staff post-merger, a move aimed at safeguarding jobs and easing transition shocks.

NBK was established in 1968 as a fully state-owned lender tasked with empowering Kenyans economically post-independence. However, it became a KCB Group subsidiary in 2019 after a government-directed buyout following years of operational woes marked by a growing list of non-performing loans. 

For KCB Group, the divestiture appears to be part of a broader restructuring strategy, with CBK approving the transfer of selected NBK assets and liabilities back to KCB Bank Kenya before the handover to Access.

Meanwhile, Access Bank’s parent company, Access Holdings Ltd, continues to grow its international presence. With the NBK acquisition, the group strengthens its network across over a dozen countries, including Ghana, Rwanda, Nigeria, South Africa, and the UK. The bank also maintains representative offices in India, China, Lebanon, and the UAE.

In mid-March, it emerged that the Central Bank of Nigeria had imposed a precondition requiring Access Bank to divest from its operations in the Democratic Republic of Congo.

As Access Bank integrates NBK into its regional operations, the spotlight now turns to how swiftly and effectively it can deliver value in the competitive Kenyan market. For the East African banking sector, this deal signals renewed confidence in cross-border investments and sets the tone for further consolidation across the continent.

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