The Central Bank of Kenya (CBK) has approved the transfer of all assets and liabilities of Access Bank Kenya to National Bank of Kenya (NBK). This move aims to resolve a Sh2.11 billion capital shortfall faced by Access Bank Kenya. The approval was granted on August 17 under the Banking Act and received clearance from the Treasury on September 21. The merger is part of Access Bank Plc's consolidation of its Kenyan operations.
Access Bank Kenya had a core capital of Sh892 million as of June 2026, falling short of the required minimum of Sh3 billion. In contrast, NBK held a core capital of Sh12.01 billion during the same period, making it fully compliant with the Business Laws (Amendment) Act 2024. This Act raised the minimum core capital requirement from Sh1 billion, prompting several banks to raise additional capital.
The proposed merger between Access Bank Kenya and NBK is expected to strengthen the combined entity's core capital and ensure regulatory compliance. Access Bank Kenya had stated in June that it would rely on the merger with NBK to achieve compliance rather than seeking additional funding from its parent company.
The merger consolidates Access Bank's Kenyan operations under NBK, potentially resulting in a larger balance sheet for the group. This development comes as Kenyan banks face increasingly higher capital requirements following changes to the Banking Act. The Act initially provided for further increases to Sh5 billion by the end of 2026, Sh6 billion in 2027, Sh8 billion in 2028, and Sh10 billion by 2029.
However, the government has since adjusted the implementation of the Sh10 billion requirement. In June, Treasury CS John Mbadi extended the deadline to December 2032 and set a one-off deadline for banks to meet the threshold. This change aims to provide banks with more time to comply with the new capital requirements.
Access Bank Plc acquired NBK from KCB Group in May 2025, which was its second acquisition in Kenya. The first acquisition was in 2020, when it bought Transnational Bank and rebranded it as Access Bank Kenya. The CBK's approval of the merger marks a significant step towards resolving Access Bank Kenya's capital shortfall.
The completion of the transfer in line with the business and assets transfer agreement between Access Bank Kenya and NBK will bring relief to Access Bank Kenya. The merger is expected to have a positive impact on the Kenyan banking sector, which has been experiencing a wave of capital raising among banks to meet the new regulatory requirements.
Key points
- The merger between Access Bank Kenya and NBK aims to resolve a Sh2.11 billion capital shortfall faced by Access Bank Kenya.
- The combined entity is expected to have a stronger core capital and ensure regulatory compliance.
- The merger consolidates Access Bank's Kenyan operations under NBK, potentially resulting in a larger balance sheet for the group.
