NAIROBI, Kenya- In a notable move for Kenya’s banking sector, the Competition Authority of Kenya (CAK) has approved Access Bank PLC’s acquisition of the National Bank of Kenya (NBK), subject to specific workforce conditions.
As part of the agreement, the Nigerian lender will retain at least 80pc of NBK’s current staff for one year, preserving stability for both employees and customers as the banks integrate.
The transaction, facilitated by KCB Group, marks Access Bank’s expanding footprint in East Africa, especially within Kenya’s competitive financial landscape.
To ease the transition for NBK’s 1,384 employees, the CAK mandated that Access Bank must keep the majority of the workforce intact for at least a year, ensuring operational stability for staff and clients alike.
Similarly, Access Bank Kenya Plc, which currently has 316 employees, will retain all its workers for the same period.
This assurance of job security is a significant condition to ease concerns over the acquisition’s impact on the labor market and safeguard against job losses often associated with mergers.
CAK’s assessment found that this acquisition won’t disrupt competition within Kenya’s banking industry, primarily due to the market’s diversity and robust presence of established players.
While Access Bank’s Kenyan subsidiary currently holds a modest 0.2pc market share, the acquisition is expected to boost its share to 1.9pc, prompting its reclassification from a tier 3 to a tier 2 bank.
Listed on the Nigerian Stock Exchange, Access Bank operates under Access Bank Kenya Plc in Kenya, where it currently oversees 23 branches across 12 counties.
The acquisition signals a strategic step for the Nigerian bank, not only in market expansion but also in positioning itself as a mid-tier player capable of competing with larger banks in Kenya’s dynamic financial sector.
Post-merger, Access Bank’s enhanced market share will broaden its customer base and regional influence, reinforcing its commitment to East African growth.
Initially submitted to the COMESA Competition Commission (CCC) for review, the acquisition underwent a national evaluation by CAK, which determined that the merger would primarily impact Kenya’s market.
While the combined market size will increase, CAK noted that the competitive landscape remains intact, with the merged entity expected to face strong competition from other established Kenyan banks.
For both Access Bank and National Bank of Kenya, this deal presents an opportunity to tap into new customer segments and expand service offerings in a growing economy.
As Access Bank’s market position strengthens, customers can expect enhanced services while maintaining the stability of familiar NBK operations.
Kenya’s banking sector is set for a dynamic shift, and as Access Bank takes on a larger role, it aims to deliver competitive options within an evolving marketplace.
The acquisition underscores the rising trend of cross-border partnerships in African banking, supporting both market expansion and improved service delivery.
