The Competition Authority of Kenya (CAK) has given the green light to Access Bank’s acquisition of the National Bank of Kenya (NBK), subject to the condition that 80% of the staff are retained for a year post-transaction. The next step is securing approval from the Central Bank of Kenya (CBK).
According to CAK, Access Bank Plc must keep at least 80% of NBK’s current workforce and all Access Bank (Kenya) Plc employees for a year after the deal is finalized. NBK has 1,384 employees, while Access Bank Kenya has 316.
The financial details of the acquisition have not been disclosed, but it is estimated to be around $100 million based on NBK’s book value of $79.77 million in 2023. The completion of the deal is anticipated in November.
Access Bank, with 23 branches in 12 counties in Kenya, will benefit from NBK’s 77 branches in 28 counties, expanding its presence in East Africa’s largest economy. NBK is currently a tier 2 lender, whereas Access Bank is classified as a tier 3 bank.
Upon completion of the acquisition, the merged entity is expected to hold a combined market share of 1.9%. CAK stated that competition in the market will not be significantly affected by this merger as there are other players in the industry.
Access Bank has not provided any comments on the matter at this time.