The Central Bank of Kenya (CBK) and the National Treasury have given the green light to Access Bank's acquisition of National Bank of Kenya (NBK), nearly a year after the Nigerian lender first expressed interest in the deal. The transaction is still subject to approval from Nigerian authorities.

The approval was announced in a public notice on Monday, with CBK Governor Kamau Thugge stating that the bank had approved the acquisition of 100% of NBK's issued share capital by Access Bank PLC. The National Treasury Cabinet Secretary, John Mbadi, also approved the deal on April 10, 2025.

The acquisition is expected to expand Access Bank's footprint in East Africa's largest economy, given NBK's nationwide branch network. This is Access Bank's second acquisition in Kenya in five years, following its purchase of Transnational Bank in 2020. The deal is part of the bank's pan-African expansion drive, which has seen it acquire banks in other African countries, including Ghana and Rwanda.

The transaction value has not been disclosed, but KCB Group, which currently owns NBK, said in March 2024 that it had agreed to sell the bank at 1.25 times its book value. Based on NBK's 2023 book value of $79.77 million, the deal could be valued at approximately $100 million. However, the final acquisition figure could still be different from this estimate.

Access Bank is expected to inject more capital into NBK to shore up its books if the deal is closed. Since KCB acquired the loss-making lender in 2019, it has spent over $63.5 million to improve its capital strength and keep it on track to profitability.

The acquisition is significant for Kenya's banking sector, which has seen consolidation in recent years. The deal is expected to create a stronger and more competitive banking institution, which will benefit customers and the economy as a whole.

The approval of the acquisition is a positive development for Access Bank's expansion plans in East Africa. The bank has been aggressively expanding its operations in the region, and the acquisition of NBK is expected to further strengthen its position in the market.

The deal is also a testament to the growing interest in Kenya's banking sector from international lenders. In recent years, several African and international banks have acquired stakes in Kenyan banks, highlighting the country's attractiveness as a banking hub in East Africa.

As the deal moves forward, industry experts will be watching to see how Access Bank integrates NBK into its operations and how the acquisition will impact the Kenyan banking sector as a whole.