Access Bank has received the final green light from Kenyan regulatory bodies to acquire 100% ownership of the National Bank of Kenya Limited (NBK) from KCB Group Plc. The Central Bank of Kenya (CBK) officially announced its approval on Monday, April 14, 2025, following an agreement initially declared over a year prior. This acquisition signifies Access Bank's strategic expansion into the East African financial landscape.

The CBK's statement, released on its X page, confirms the approval granted on April 4, 2025, in accordance with Section 13(4) of the Banking Act. This pivotal decision facilitates the transfer of specific assets and liabilities from the National Bank of Kenya Limited to KCB Bank Kenya Limited, as sanctioned by Section 9 of the same Act. Further bolstering the acquisition, the Cabinet Secretary for The National Treasury and Economic Planning granted their approval on April 10, 2025.

The CBK clarified that the formal acquisition and asset transfer will take effect upon the transaction's completion, adhering to the terms outlined in the agreement between Access Bank and KCB Group Plc.

Originally established in 1968 as a wholly government-owned entity, NBK was created to broaden credit access and encourage economic involvement among Kenyans in the post-independence era. In September 2019, KCB Group fully acquired NBK, which also operates NBK Bancassurance Intermediary Limited as a subsidiary. KCB Bank, a fully owned subsidiary of KCB Group Plc, functions as a non-operating holding company with banking subsidiaries spread across East Africa, including Uganda, Tanzania, Rwanda, Burundi, Ethiopia, South Sudan, and the Democratic Republic of Congo.

This acquisition marks Access Bank's second venture into the Kenyan market, following its acquisition of Transnational Bank Ltd in 2019.

According to TUKO.co.ke, the sale of NBK to Access Bank also received approval from National Treasury Cabinet Secretary John Mbadi. The Competition Authority of Kenya (CAK) had previously approved the sale of shares of NBK to Access Bank, stipulating that 80% of the workforce be retained.

While the transaction value remains undisclosed, KCB Group indicated last year an agreement to sell NBK at 1.25 times its book value. Based on the bank's 2023 book value of $79.77 million (KSh 10.33 billion), the deal could potentially reach approximately $100 million (KSh 12.95 billion).

The state's approval of Access Bank's acquisition of NBK occurs as KCB Group reports a significant 64.9% increase in profit after tax for the financial year ending December 2024, reaching KSh 61.8 billion. The Group's total income reached KSh 204.9 billion, primarily driven by interest income from loans, government securities, and placements, leading to the announcement of a total dividend of KSh 9.6 billion.