Brooklyn, New York , Jan 17 – Central Bank of Kenya has approved the acquisition of 100% of Transnational by Access Bank effective February 2020.
In a statement, CBK says the move comes as a result of approval by the bank regulator and treasury in line with the banking act.
“This follows CBK’s approval on December 24, 2019, under Section 13 (4) of the Banking Act and approval by the Cabinet Secretary, National Treasury on January 6, 2020, for the acquisition under Section 9 of the Banking Act,” reads the statement.
It adds that the move is aimed at strengthening the resilience of Kenya’s banking sector.
Transnational Bank Plc commenced operations in December 1985 and has assets worth Sh10.2 billion.
It has twenty-eight branches across the country.
In 2018, the bank made a loss of Sh71.8 million after registering a profit of Sh36.4 million in 2017.
Access Bank, on the other hand, became Nigeria’s largest bank after merging operations with Diamond Bank of Nigeria.
It has a total asset base of approximately Sh1.61 trillion with more than five subsidiaries across the region.
“Access Bank has subsidiaries in the Democratic Republic of Congo (DRC), Gambia, Ghana, Nigeria, Rwanda, Sierra Leone, Zambia, and the United Kingdom. The bank also operates representative offices in China, United Arab Emirates, Lebanon, and India,” CBK statement indicates.