Access Bank is nearing the final stages of acquiring the National Bank of Kenya (NBK) from the KCB Group, having passed a key milestone with approval from Kenya’s Competition Authority (CAK).
Proposed in March 2024, the acquisition now only requires the Central Bank of Kenya’s sign-off, anticipated for November.
The CAK set some conditions for Access Bank’s market entry. The Nigerian bank must retain at least 80% of NBK’s current 1,384 employees for one year and keep all 316 employees at Access Bank Kenya on board.
Should any layoffs occur, the bank must adhere to Kenyan employee compensation laws. Alongside NBK, Access Bank will also acquire KCB’s insurance arm, National Bank Insurance Brokers Ltd. (NBBIL), adding further to its footprint in the Kenyan market.
Once finalised, this acquisition will boost Access Bank’s market share from 0.2% to 1.9% in Kenya’s Tier 3 banking sector. CAK acknowledges that this may give Access Bank a competitive edge, though it has enforced conditions to balance the merger’s impact.
This deal marks another milestone in Access Bank’s 2024 expansion strategy. Earlier this year, it acquired 80% stakes in Uganda’s Finance Trust Bank and African Banking Corporation in Zambia and Tanzania.
The NBK acquisition showcases Access Bank’s ongoing commitment to strengthening its African presence through strategic acquisitions.
source: https://techpoint.africa/2024/10/31/techpoint-digest-956/