KCB set to sell subsidiary NBK to Access Bank
Regional lender Kenya Commercial Bank (KCB) Group, is readying the announcement of the sale of its subsidiary, the National Bank of Kenya (NBK), according to a report by Business Daily. KCB Group is set to announce its 2023 full-year results upon the close of markets later today.
While the exact value of the deal remains undisclosed, sources suggest that NBK is likely to be acquired by a Nigerian lender.
The news has already had a notable impact on KCB’s share price, which surged by 5 percent on Wednesday morning to Kes25.5 following speculation about the sale.
The potential buyer, reportedly Access Bank Kenya, is part of Nigeria’s Access Bank Group, indicating a strategic move into the East African market.
KCB’s acquisition of NBK in 2019 marked a critical moment in the Kenyan banking sector, with the former stepping in to rescue the struggling medium-sized lender, which was then under state control.
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In response to the reports, National Bank has issued a statement reassuring its customers that its operations remain uninterrupted.
The bank notes that all branches are open for business as usual and any further developments regarding the sale will be communicated through official channels.
This potential sale comes against the backdrop of ongoing consolidation in the Kenyan banking industry. In 2020, Access Bank, Nigeria’s largest lender by assets, acquired Kenya’s Transnational Bank.
This trend has been driven by various factors, including the CBK’s cap on lending rates, stricter supervision, and an overcrowded banking sector, prompting banks to seek mergers and acquisitions to enhance their competitiveness.
