Access Bank sets 2025 finish line for $100M acquisition of KCB unit

Access Bank Plc, Nigeria’s largest lender by assets, will complete its acquisition of the KCB Group-owned National Bank of Kenya (NBK) by the end of the third quarter of 2025, marking a significant step in its pan-African expansion strategy.

The deal, potentially valued around $100 million, gives Access Bank a deeper foothold in Kenya, East Africa’s largest economy. The timeline was confirmed by Access Bank Managing Director Roosevelt Ogbonna during the bank’s full-year 2024 earnings call on Wednesday.

“My expectation is that before the end of the third quarter, we should see significant progress made on the NBK transaction. Without a doubt, it will be a 2025 play,” Ogbonna stated. “Whether it happens at the end of the second or third quarter, we will wait and see.”

The acquisition concludes a lengthy process, with regulatory hurdles spanning nearly a year now cleared. “We now have all the regulatory approvals required. Central Bank of Nigeria approval. Central Bank of Kenya. Treasury office approval from Kenya. The finance ministry has approved,” Ogbonna confirmed, adding that the bank is coordinating with KCB to initiate integration.

For Nairobi-based KCB Group, the sale divests a loss-making asset acquired in 2019. KCB had previously opted against injecting further capital – reportedly up to sh8 billion ($60 million) – needed for NBK to meet minimum regulatory capital ratios.

While the final transaction value remains undisclosed, KCB indicated in March 2024 an agreement to sell NBK at 1.25 times its book value. Based on NBK’s 2023 book value of $79.77 million, this implies a price tag nearing $100 million, though the final figure may differ.

This marks Access Bank’s second acquisition in Kenya within five years, following its 2020 purchase of Transnational Bank. The move mirrors expansion efforts by Nigerian rivals like United Bank for Africa Plc and Guaranty Trust Holding Co Plc into the Kenyan market.

Access Bank, serving approximately 60 million customers globally, is expected to inject fresh capital into NBK post-acquisition to strengthen its balance sheet, aligning with its history of recapitalising banking entities on the continent classified for sale.