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KCB retains some NBK shared clients in Access Bank sale
KCB Branch in Nairobi. KCB retained part of the assets and liabilities held in the National Bank of Kenya even as the bank was transferred to Nigeria's Access Bank.
A portion of customers, who held accounts with both National Bank of Kenya and KCB Bank Group have opted to stay with the latter following the sale of its subsidiary to Nigeria’s Access Bank.
This saw KCB retain part of the assets and liabilities held in NBK even as the bank was transferred to the Lagos-headquartered bank.
The sale of 100 percent of issued shares in NBK to Access Bank was concluded on May 30, 2025, at a price based on 1.25 times the book value of the subsidiary.
The completion of the sale allowed the directors of KCB to recommend an interim and special dividend of Sh4 per share, which will be paid on or before November 11 to shareholders on the banks’ books as at the close of business on September 3.
KCB Group Chief Executive Officer Paul Russo noted that some common customers between the bank and NBK chose to be served by the former, having already forged strong relationships over the years.
He did not, however, disclose the value of assets and liabilities retained in KCB from NBK.
“Whenever you run a transaction, there are interests on both sides. So, there are certain customers that are common,” he said. “A customer in KCB might have had an account at NBK also. A loan facility with the bank is likely secured with deposits or collateral that sit on our books from a different loan with us. Such a client is better off engaging with us than moving to Access.”
KCB Group says it has endeavoured to pair any retained liabilities with matching assets of a similar value to ensure that outstanding facilities are secured. The lender has also retained its top client base from the transaction, having already assessed their potential after running NBK since 2019, when it acquired the bank.
“Because we have been running the organisation (NBK), we know certain customers better, so we can keep them, and some are extremely well performing,” added Russo.
NBK closed the first quarter to March 2025 with an asset base of Sh149.5 billion, which comprised Sh70.7 billion in loans and advances to customers. The bank’s deposits, meanwhile, stood at Sh104.3 billion.
NBK is the second acquisition for Access Bank, which entered the Kenyan market in 2020 through the buyout of the Moi-linked Transnational Bank.
Access Bank said the acquisition of NBK marked a pivotal step in its expansion strategy in East Africa, with the combined entity being expected to significantly enhance the bank’s presence in Kenya and East Africa.
The acquisition is expected to allow Access to offer a robust suite of banking services that cater to individuals and businesses in Kenya.
“Finalising this acquisition marks a significant step in our drive towards unlocking the vast potential of East Africa’s financial landscape. 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 to deliver high-impact banking solutions,” said Access Bank Plc Managing Director Roosevelt Ogbonna.
KCB Group remains in the mergers and acquisitions space with the acquisition of Riverbank Solutions, a fintech firm, in progress with regulatory approvals in various stages.
