KCB Group Sells National Bank of Kenya [Details]

KCB Group has announced the sale of its subsidiary National Bank of Kenya (NBK) to Nigeria’s Access Bank.

In a statement on Wednesday, March 20, KCB Company Secretary Bonnie Okumu said KCB and Access Bank have signed a binding purchase agreement to acquire 100 percent shareholding in NBK from KCB.

“The Board of Directors of KCB Group Pic (KCB) wishes to advise shareholders and investors that on 20 March 2024 KCB entered into a share purchase agreement ("Agreement") with Access Bank Plc (Access Bank), which, if the proposed transaction is successfully completed, would result in Access Bank acquiring 100% of the issued ordinary shares in National Bank of Kenya Limited (NBK) from KCB,” read the statement in part.

Access Bank is a public company incorporated under the laws of Nigeria and operates in Kenya via its subsidiary Access Bank Kenya Plc, formerly Transnational Bank Kenya Plc.

Okumu noted that the completion of the sale will be subject to conditions including, but not limited to, receipt of all regulatory approvals from, amongst others, the Central Bank of Kenya, the Central Bank of Nigeria, the COMESA Competition Commission, and if required, the Capital Markets Authority of Kenya, and notifications to other relevant regulators.

Upon completion of the sale, NBK will become a subsidiary of Access Bank. In the meantime, NBK Customers will continue to access seamless services across various touchpoints including through the branch network and mobile banking platforms.

KCB Group advised its shareholders to exercise caution in the stock exchange in Nairobi, Uganda, Rwanda, and Dar es Salaam.

“Pending completion of the proposed transaction, the shareholders of KCB and other investors are advised to exercise caution when dealing in the shares of KCB on the Nairobi Securities Exchange, the Uganda Securities Exchange, the Rwanda Stock Exchange, and the Dar es Salaam Stock Exchange,” Okumu added.

Speaking after signing the agreement with Access Bank, KCB CEO Paul Russo said the transaction represents a great opportunity for KCB to maximize while strengthening its competitive position.

“The past four years have been defining for NBK as a KCB Group subsidiary and this step marks the opening of new opportunities. During the period, we have made progressive investments in the Bank, and we believe that this is in the best interest of the Group and its sustainability. Our growth strategy is premised on bath organic and inorganic plans, and we shall continue to seek opportunities that increase our shareholder's value," said Russo.