The planned acquisition of the National Bank of Kenya (NBK) by Nigeria’s Access Bank has encountered a major delay due to regulatory conditions imposed by the Central Bank of Nigeria (CBN). Despite receiving all necessary approvals from Kenyan authorities, the deal remains incomplete as Nigerian regulators have yet to issue final clearance.
The Central Bank of Kenya (CBK) approved the acquisition on April 4, 2025, under Section 13(4) of the Banking Act. This was followed by a green light from the Kenyan National Treasury on April 10, 2025. However, the CBN has stalled the deal, insisting that Access Bank must exit the Democratic Republic of Congo (DRC) market and undergo a review of its operations in the United Kingdom.
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Access Bank currently operates in the DRC through Access Bank (RD Congo), a subsidiary acquired in 2009. The unit has been profitable, posting a net income of $4.4 million in 2023, with operations in Kinshasa, Goma, and Lubumbashi. Nonetheless, the CBN has cited persistent macroeconomic instability in the DRC, ranging from inflation volatility to liquidity constraints, as a concern. These issues have historically affected Nigerian banks operating in the region. As a result, the CBN is pushing for a complete divestiture from the DRC before clearing the NBK acquisition.
In addition, the Nigerian regulator has launched a review of Access Bank’s London operations. Although details about the scope and focus of the review remain unclear, financial analysts suggest it may relate to Nigeria’s broader objective of ensuring banks maintain strong capital buffers and adhere to international compliance standards amid increasing global expansion.
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While Nigerian regulators remain cautious, Kenyan authorities have largely supported the transaction, with certain safeguards in place. The Competition Authority of Kenya (CAK) approved the merger in late 2024, on condition that Access Bank retain at least 80% of NBK’s 1,384 employees and all 316 staff at Access Bank Kenya for a minimum of one year following the acquisition. The COMESA Competition Commission also cleared the deal, stating it posed no threat to market competition or public interest.
Further to this, the CBK also authorized the transfer of certain assets and liabilities from NBK to KCB Bank Kenya Limited, a wholly owned subsidiary of KCB Group, as part of the broader acquisition process.
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Although Access Bank reportedly received preliminary approval from the CBN in early 2025, the additional regulatory conditions have significantly extended the transaction timeline. Initially expected to close by September 2024, the deal was pushed to February 2025 and then to March 2025. As of April 15, 2025, the transaction remains pending.
Access Bank, Nigeria’s largest lender by assets, first announced its intention to acquire NBK in March 2024 through a binding agreement with KCB Group. The deal, valued at approximately $100 million, 1.25 times NBK’s book value of $79.77 million, aims to cement Access Bank’s presence in Kenya, an important hub for East African trade and finance.
The acquisition is a key step in the bank’s pan-African expansion, particularly under the framework of the African Continental Free Trade Agreement (AfCFTA). Once finalized, NBK is expected to merge with Access Bank Kenya Plc, forming a larger, more competitive financial entity in the region.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.