Kenya’s largest lender by assets, KCB Group, has retained a portion of National Bank of Kenya’s (NBK) customers, assets, and liabilities following the bank’s full acquisition by Nigeria’s Access Bank.
The acquisition, announced on June 2, transferred ownership of NBK to Access Bank, marking a significant milestone in the Nigerian lender’s East African expansion strategy.
Despite the sale, which is believed to be worth $100 million, KCB Group confirmed that several clients who held relationships with both banks opted to remain under its management. These retained customers represent a slice of NBK’s loan book and deposit base, which KCB continues to oversee.
“Whenever you run a transaction, there are interests on both sides,” said KCB Group CEO Paul Russo in an interview with Business Daily. “A customer in KCB might also have had an account at NBK. If a loan is secured with deposits or collateral that sit on our books, that client is better off engaging with us than moving to Access.”
Exact Value Not Disclosed
KCB has not disclosed the exact value of the retained assets and liabilities, but emphasized that exposures have been matched with corresponding assets to ensure full loan security.
Russo added that KCB retained what it considered its strongest NBK clients, based on performance assessments conducted since the group took control of NBK in 2019.
“Because we have been running the organisation (NBK), we know certain customers better, so we can keep them, and some are extremely well performing,” Russo noted.
Capital Boost and Dividend Payout
The divestiture has freed up capital for KCB, enabling the board to recommend an interim and special dividend of $0.031 (KES4) per share. The payout is scheduled for November 11, 2025, for shareholders on record as of September 3.
At the end of March 2025, NBK reported total assets of $1.1 billion (KES149.5 billion) and customer deposits of $808.4 million (KES104.3 billion). These figures underscore the strategic value of the acquisition for Access Bank, which aims to position NBK as the cornerstone of its East African operations.
What You Should Know
- Access Bank, which previously operated 22 branches in Kenya, will now inherit NBK’s extensive 85-branch network, significantly expanding its footprint in the country.
- The acquisition received regulatory approval from the Central Bank of Kenya on April 4, 2025, under Section 13(4) of the Banking Act, and was further endorsed by the Cabinet Secretary for the National Treasury and Economic Planning on April 10, 2025.
In its statement, Access Bank emphasized the strategic importance of the deal.
“Access Bank PLC has acquired National Bank of Kenya, a strategic move to deepen our presence in East Africa. Kenya stands at the heart of regional commerce, and with NBK now part of the Access Bank family, we are better positioned to leverage our combined strengths in public sector, corporate, retail, and digital banking to deliver high-impact banking solutions.”
However, Access Bank will need to inject fresh capital into NBK to meet regulatory requirements and support the bank’s turnaround following years of underperformance.
