A customer at a Transnational Bank branch in Nairobi. FILE PHOTO | NMG
Central Bank of Kenya (CBK) has given nod to a top Nigerian
lender to acquire Transnational Bank, a mid-tier lender associated with
the retired president Daniel Moi and his associates.
CBK
governor Patrick Njoroge announced on Friday that he has given green
lights to the deal coming months after the Competition Authority of
Kenya (CAK) also endorsed the transaction.
“The Cabinet
Secretary for the National Treasury and Planning has also approved the
acquisition of up to 100 percent of the issued share capital of
Transnational Bank Plc by Access Bank Plc,” Dr Njoroge announced.
The
acquisition will be concluded on February 1 by Nigeria’s Access Bank,
extending the mergers and acquisitions in Kenya’s banking sector.
Dr
Njoroge said the deal will strengthen the resilience of Kenya’s banking
sector given that Access Bank is the largest lender in Nigeria with an
asset base of about Sh1.61 trillion ($16.10 billion).
Other banks that have been acquired in the last seven years
include Fina Bank, Giro Commercial bank, Oriental Commercial Bank,
Fidelity Bank, Chase Bank and Imperial Bank.
The deal
will see Nigerian banks deepen their presence in Kenya with United Bank
of Africa (UBA) and Guarantee Trust Bank already in the market.
Access, with assets worth Sh1.17 trillion, also has presence in Gambia, Sierra Leone, Ghana, Congo, Zambia, China and the UK.
Acquisition
of Transnational brings to an end the existence of the 35-year-old
Kenyan bank with 28 branches. Its top owners include companies owned by
close associates of Moi including Joshua Kulei, Simeon Nyachae and late
former vice-president George Saitoti.
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