Nigeria's Access Bank is on the verge of completing its acquisition of National Bank of Kenya (NBK) from KCB Group, Kenya's largest bank. The deal, which was expected to close five months ago, is awaiting final regulatory approval from the Central Bank of Kenya (CBK). If approved, the acquisition will mark a significant milestone in Access Bank's push to expand its presence across Africa.

The acquisition, valued at around $100 million, will give Access Bank a stronger foothold in Kenya, East Africa's largest economy. The deal has already received approval from Kenya's Competition Authority (CAK), with the condition that Access Bank retains at least 80% of NBK's 1,384 employees for a year after the acquisition. Additionally, Access Bank will be required to keep all 316 employees of its Kenyan subsidiary.

KCB Group CEO Paul Russo confirmed that the deal is still on track, noting that NBK's performance has already been included in KCB's 2024 full-year results. Russo added that they are in the advanced stages of getting regulatory approvals. The Central Bank of Nigeria (CBN) has already given its nod, and now they are just waiting for the final approval from the Central Bank of Kenya (CBK).

The pending sale has already impacted KCB's 2024 financial results. The bank reported a KES 2.0 trillion ($15.4 billion) balance sheet, the largest in the region. However, total assets dropped by 10%, partly due to the Kenyan shilling's appreciation against other regional currencies.

In related news, the Central Bank of Kenya (CBK) has announced plans to replace branch-based banking licence fees with a Gross Annual Revenue (GAR) system. Under the new model, banks will pay a percentage of their yearly income at progressive rates, starting at 0.6% in 2025 and rising to 1% by 2027, to maintain their licences. The CBK expects the new model to generate KES 4.5 billion ($34.7 million) in the first year, increasing to KES 7.5 billion ($57.9 million) by 2027.

The GAR model ties banks' license fees to their income, meaning they'll pay more as they earn more. This is expected to reduce their profits by 1.8% to 3.1% over the next three years. Banks may face challenges in lowering lending rates as the CBK wants, and might resist fully complying with the regulator's push for lower rates, creating tension as banks try to increase earnings against making credit more affordable.

In other news, South African startups are rising to the occasion to provide innovative solutions to the country's energy crisis. With electricity prices set to rise by 26% over the next three years, startups are offering smart energy management tools, off-grid systems, and renewable energy services to help reduce energy costs and pave the way for a more sustainable and affordable energy future.

Meanwhile, Nigeria's telecom operators, MTN Nigeria and Airtel, have committed to increasing investments in their network infrastructure to improve broadband connectivity across the country. The recent 50% increase in telecom tariffs, approved by the Nigerian Communications Commission (NCC), has also played a role in this new wave of spending.

With telcos now committing to increased investment in core infrastructure, there is hope for improved network quality, faster internet speeds, and better coverage across Nigeria. The surge in data demand, driven by streaming, social media, and digital services, has pushed average data usage per subscriber to 11.2GB for MTN and 8.4GB for Airtel as of Q4 2024.