- The Competition Authority of Kenya approved Nigeria’s Access Bank PLC’s acquisition of the National Bank of Kenya (NBK) on the condition that it retains 80% of the workforce
- Access Bank Kenya, with a market share of 0.2%, is licensed by the Central Bank of Kenya (CBK) and has 23 branches across 12 counties
- National Bank of Kenya is a subsidiary of Kenya Commercial Bank (KCB), which is listed on the Nairobi Securities Exchange (NSE)
PAY ATTENTION: Got a Minute? Complete Our Quick Survey About TUKO.co.ke!
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.
The Competition Authority of Kenya (CAK) has approved the National Bank of Kenya (NBK) acquisition by Nigeria’s Access Bank PLC.
Source: Getty Images
Why CAK approved NBK’s acquisition
CAK approved the acquisition on the condition that the Nigerian lender retains at least 80% of the National Bank’s workforce and its local subsidiary, Access Bank Kenya, for a year after the transaction.
Read also
Govt picks 6 banks to handle SHIF contributions as payslip deductions take effect
PAY ATTENTION: TUKO Needs Your Help! Take our Survey Now and See Improvements at TUKO.co.ke Tomorrow
“This transaction has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for financial services,” CAK stated on Wednesday, October 30.
Access Bank Kenya is licensed by the Central Bank of Kenya (CBK) and has 23 branches across 12 counties.
What is Access Bank Kenya’s market share?
On the other hand, the National Bank of Kenya is a subsidiary of Kenya Commercial Bank (KCB), listed on the Nairobi Securities Exchange (NSE).
CAK noted that the proposed transaction involves Access Bank PLC acquiring NBK’s entire issued share capital from KCB Group.
NBK boasts 77 branches across 28 counties.
According to CAK, as of December 2023, Access Bank Kenya was classified as a tier three bank with a market share of 0.2%, ranking 37th out of 39 banks.
Read also
JP Morgan CEO meets President Ruto after CBK approved operations in Kenya
“Post-merger, the market share of the acquirer will increase from 0.2% to 1.9% and it will be classified as tier two,” CAK added.
What COMESA stated on NBK’s acquisition
Earlier, TUKO.co.ke reported that the COMESA Competition Commission approved the acquisition of the National Bank of Kenya by Nigeria’s Access Bank from KCB Group.
COMESA began an investigation into the deal in July 2024 and concluded that the merger would not harm competition or public interest within the region.
KCB Group had finalised a deal to sell the subsidiary at a book value 1.25 times that of Nigeria’s Access Group.
KCB’s acquisition of NBK in 2019 aimed to revitalise the state-controlled medium-sized lender, but challenges in NBK’s performance led to a reevaluation, ultimately resulting in the decision to divest.
Source: TUKO.co.ke
