KCB Retains Share of NBK Clients After $100M Sale to Access Bank
TLDR
- KCB Group, Kenya’s largest bank by assets, has retained part of National Bank of Kenya’s (NBK) portfolio following its $100 million sale to Nigeria’s Access Bank
- The deal, completed on May 30, transferred NBK in full, but KCB said some shared customers remained with the Kenyan lender
- KCB did not disclose the value of assets and liabilities retained but said exposures were matched with collateral
KCB Group, Kenya’s largest bank by assets, has retained part of National Bank of Kenya’s (NBK) portfolio following its $100 million sale to Nigeria’s Access Bank.
The deal, completed on May 30, transferred NBK in full, but KCB said some shared customers—those with cross-collateralised loans or deposits—remained with the Kenyan lender. “If a loan is secured with deposits or collateral on our books, that client is better off engaging with us than moving to Access,” KCB CEO Paul Russo said.
KCB did not disclose the value of assets and liabilities retained but said exposures were matched with collateral. Russo added that the bank held onto its strongest NBK clients, assessed since it took over the lender in 2019.
The transaction has freed capital for KCB, whose board proposed an interim and special dividend of $0.031 (KES4) per share, payable in November. NBK, which reported assets of $1.1 billion and deposits of $808.4 million at the end of March, will serve as the centrepiece of Access Bank’s East Africa strategy.
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Points clés à retenir
Access Bank’s acquisition of NBK marks one of the most significant cross-border banking deals in East Africa this year. The Nigerian lender, which had 22 branches in Kenya, gains control of NBK’s 85-branch network, expanding its footprint in a competitive market. To strengthen NBK’s balance sheet, Access will need to inject additional capital to meet regulatory thresholds and address years of underperformance. For KCB, retaining part of NBK’s customer base allows it to keep well-performing loans while offloading the weaker book. The move improves capital efficiency and supports shareholder payouts. Strategically, it positions KCB to focus on consolidating its regional operations while Access takes on the challenge of reviving NBK. The transaction underscores two diverging strategies: Access pursuing market expansion in East Africa, while KCB optimises balance sheet strength at home.
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