Moi family-linked Transnational Bank sold to top Nigerian lender

A customer at a Transnational Bank branch in Nairobi. FILE PHOTO | NMG 

By PATRICK ALUSHULA
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Summary

• Regulatory filings show that Access Bank, which has a presence in seven African countries including Rwanda, will acquire a ...93.57 per cent stake in Transnational. The Competition Authority of Kenya (CAK) has approved the deal.
• Top owners of the 35-year-old Kenyan bank with 28 branches include companies owned by close associates of Moi, including Joshua Kulei, Simeon Nyachae and the late (former Vice President) George Saitoti.
• The lender, with assets worth Sh10.2 billion made a loss of Sh71.8 million in the financial year ended December 2018, down from a profit of Sh36.4 million in the previous year.

A leading Nigerian bank has acquired a Kenyan mid-tier lender associated with retired President Daniel Moi for an undisclosed amount.

Regulatory filings show that Access Bank, which has a presence in seven African countries including Rwanda, will acquire a 93.57 per cent stake in Transnational. The Competition Authority of Kenya (CAK) has approved the deal.

Top owners of the 35-year-old Kenyan bank with 28 branches include companies owned by close associates of Moi, including Joshua Kulei, Simeon Nyachae and the late (former Vice President) George Saitoti.

“It is notified for general information that in exercise of the powers conferred upon the CAK by section 46 (6) (a) (ii) of the Competition Act, the Competition Authority has authorised the proposed transaction as set out herein,” CAK director-general Wang’ombe Kariuki said in a Gazette notice.

This will see Nigerian banks deepen presence in Kenya with United Bank of Africa (UBA) and Guarantee Trust Bank already in the market.

Access Bank with assets worth Sh1.17 trillion, also has presence in Gambia, Sierra Leone, Ghana, Congo, Zambia, China and the UK.

Transnational’s ownership is associated with associates of former President Moi.

Sovereign Trust, a company associated with Joshua Kulei, a former aide to the ex-President, has 23.03 per cent shareholding in the lender.

Simbi Investors, linked with Simeon Nyachae, a former minister during Moi’s regime, has 8.2 million shares or 4.11 percent of the bank; while Losupuk Ltd, associated with the late former vice President George Saitoti, holds 2.79 per cent.

The bank’s chairman is Henry Kiptiony Kiplangat, who is also the vice-chancellor of Kabarak University, an institution owned by Moi family.

Mr Andre DeSimone, formerly CEO of late Nicholas Biwott-linked Kestrel Capital was also a director at Transnational but retired last December.

Common shareholder

The lender, with assets worth Sh10.2 billion made a loss of Sh71.8 million in the financial year ended December 2018, down from a profit of Sh36.4 million in the previous year.

It disclosed that it held Sh24.7 million deposits by companies controlled by directors or their families. Deposits by companies related through control by a common shareholder or their families hit Sh1.42 billion.

The small lender started off as Transnational Finance in 1984, a non-bank, deposit-taking institution that also provided hire purchase services and other loans.

It established a separate fully-fledged bank in 1985 dubbed Trans National Bank Ltd. The two financial firms merged in 1996, and Transnational Finance ceased to exist.

Other major shareholders are listed as Archers and Wilcock Ltd with a 23.75 percent stake, and Kenyerere Ltd — associated with Jared Kangwana — with 2.15 per cent stake.

The Central Bank of Kenya is yet to make public whether or not it has approved the acquisition of Transnational by Nigerian multinational commercial bank, owned by Access Bank Group.

Access made a profit of Sh17.69 billion in the financial year ended December 2017.