Nigerian bank, Access Bank, enters Kenya’s banking sector after acquiring mid-tier lender, Transnational Bank

Transnational bank. (Facebook)
  • Access Bank will acquire a 93.57% stake in Transnational bank.
  • The Competition Authority of Kenya (CAK) has approved the deal.
  • Access Bank joins a growing list of Nigerian banks already operating in the Kenyan market. 

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

Access Bank, which has a presence in seven African countries, will acquire a 93.57% stake in Transnational bank which has 28 branches across Kenya.

The Competition Authority of Kenya (CAK) has approved the deal. The Central Bank of Kenya is, however, yet to make public whether or not it has approved the acquisition.

“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.

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

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

Access Bank joins a growing list of Nigerian banks already operating in the Kenyan market including United Bank of Africa (UBA) and Guaranty Trust Bank.

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

All you need to know about Transnational bank

The lender started off as Transnational Finance in 1984, a non-bank, deposit-taking institution that also provided hire purchase services and other loans. The Tier 4 ban focused mainly on the agricultural sector.

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.

Access made a profit of Sh17.69 billion in the financial year ended December 2017. On the other hand, Transnational, 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.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Zuchu forced to apologize to fans after viral video raised eyebrows

Zuchu forced to apologize to fans after viral video raised eyebrows

Willy Paul wins against Diana Marua in court

Willy Paul wins against Diana Marua in court

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi