The approvals came in quick succession. First, the Central Bank of Kenya (CBK) signed off on the deal on April 4. Then, six days later, Kenya’s Treasury gave its nod. With these cleared, Access Bank is now the outright owner of NBK, having secured all of KCB Group’s shares in the institution.

This is not a merger of equals. Access Bank didn’t just walk into Kenya’s banking space yesterday. Back in 2020, it snapped up Transnational Bank, and now, with NBK under its belt, it’s laying down roots in one of East Africa’s most competitive markets. I’ve been following Access for years, and this move doesn’t surprise me—it’s the kind of daring expansion they’ve made a habit of.

The structure of the deal? Straightforward enough. KCB Group, which acquired NBK in 2019, is now exiting. But before stepping out, KCB will shift certain NBK assets and liabilities to its own subsidiary, KCB Bank Kenya. Both CBK and the Treasury signed off on that too. It’s all part of a bigger clean-up—make the books neat, get out, hand it over.

No word yet on the final deal value, but industry estimates put it around $100 million, based on NBK’s 2023 book value. That figure could still change. For context, KCB had spent over $63 million propping NBK up since it took over. Now, with Access stepping in, the expectation is fresh capital injections and possibly a strategic overhaul.

Kamau Thugge, the CBK Governor, made the announcement official in a government notice: “Pursuant to section 13 (4) of the Banking Act, the Central Bank of Kenya on 4th April, 2025, approved the acquisition of 100 percent of the issued share capital of National Bank of Kenya Limited by Access Bank PLC.”

The Finance Cabinet Secretary, John Mbadi, followed with his own approval on April 10. It’s all above board, legally watertight.

But what does this really mean for Kenyans?

NBK has been around since 1968. It was built as a fully government-owned lender—its mission was to give Kenyans more financial control in the years following independence. That mission eventually got muddled, and by 2019, it was bleeding badly. KCB took it in, tried to revive it, and now Access is taking on the burden—and opportunity.

For Access Bank, this is about scale and reach. NBK has an extensive branch network. That infrastructure—combined with Access’s digital playbook—could unlock serious potential. Think retail banking expansion, fintech innovation, and cross-border offerings. The CBK, for one, sees it as a win. “This transaction will ensure continued stability and enhance the resilience of the Kenyan banking sector,” it said.

Access Holdings, the parent company, has been eyeing pan-African dominance for a while. With a presence in over a dozen African countries and beyond—from Ghana to Zambia, London to Dubai—it’s been building quietly but steadily. The Kenya move is just the latest in a pattern that shows no signs of slowing.

Of course, the deal isn’t sealed until Nigeria’s regulators give their go-ahead. But with approvals on the Kenyan side sorted, it’s hard to see this falling through.

Bottom line? This is a power play. Access Bank is not here to play small. Kenya, it seems, is just the next frontier.

The lobbying, aimed directly at President William Ruto, shows the level of interest Kenya’s financial infrastructure upgrade is receiving lately.

In a letter seen by Techeconomy, Ceva formally requested a meeting with Ruto, proposing to introduce NIBSS as a strategic partner for the project. 

The letter, signed by Ceva’s Managing Director, Yatin Mehta, suggested holding the meeting on 20th or 21st March 2025. “We are writing to formally request a meeting with you at your earliest convenience,” the letter stated. “The purpose of the meeting is to introduce our partner, the Nigerian Interbank Settlement Systems (NIBSS).”

The proposed meeting, including NIBSS CEO Premier Oiwoh, head of Partnerships Yvonne Ige, and Mehta himself, also expected David Kiprono, director of Webmasters Kenya Ltd—the company behind the development of Kenya’s e-Citizen platform.

NIBSS, owned by the Central Bank of Nigeria (CBN) alongside commercial banks, is the backbone of Nigeria’s financial transactions. Ceva, an international payments firm operating in India, Nigeria, Kenya, and Brazil, claims to process $40 billion annually. Their pitch? A solid system designed for Africa, by Africa.

“Our robust infrastructure is developed in Africa, for Africa,” Ceva wrote in its letter. “AfriGo is NIBSS’ answer to Africa having its own card processing, driving our economic independence and efficiency. India has done it with Rupay, China has done it with UnionPay, UAE has done it with Jaywan, Brazil has done it with PIX.”

The bid, however, is being resisted. Local financial heavyweights, including mobile money giant Safaricom and the Kenya Bankers Association (KBA), argue that instead of building a new FPS from scratch, the government should upgrade the existing PesaLink system. 

According to them, a fresh system could cost up to $200 million and take four years to complete, whereas improving PesaLink—a platform handling $8.5 billion annually—would be faster and cheaper.

The Central Bank of Kenya (CBK) has yet to decide on the FPS upgrade, but the competing interests show the high stakes. While NIBSS and Ceva see an opportunity to boost Kenya’s payment sector, others warn of potential disruptions and unnecessary costs.

For now, the ball is in CBK’s court. If the Nigerian-backed proposal gains traction, it could completely change digital transactions in Kenya, enhancing interoperability across banks, SACCOS, mobile money operators like M-Pesa, and fintech firms. 

But if Safaricom and the KBA succeed in their counter-lobbying, Kenya may opt for an upgrade rather than a full-scale overhaul.

This decision follows the CBK’s recent monetary policy changes, including a 75 basis point reduction in its benchmark rate, bringing it to 11.75%—its lowest level since the pandemic. 

The CBK previously issued repeated warnings about the widening gap between the Central Bank Rate (CBR) and commercial lending rates, which had reached a 31-month high in October, making obvious the slow pass-through of monetary policy adjustments to consumers.

Even with these cuts in the CBR, which had not been fully reflected in lending rates, the gap between the CBR and commercial rates continued to increase. 

The average interest rate on loans increased from 16.91% to 17.15% in October, showing the reluctance of Kenyan banks to reduce borrowing costs in response to the central bank’s actions.

On December 6, CBK Governor Kamau Thugge reiterated his call for banks to align their lending rates with the lower CBR, warning that failure to do so could harm the economy. 

He urged the banks to act in the same manner they had when increasing interest rates during periods of rising policy rates, emphasising that it was in their best interests to lower rates. He warned that the failure to reduce rates would have negative consequences for the economy as a whole.

Following the CBK’s pressure, the Kenya Bankers Association (KBA) announced that its 43 member banks would begin reviewing their loan interest rates, to make borrowing more affordable for both individuals and businesses. 

The KBA stated that individual banks had already begun issuing notices to customers regarding the upcoming rate reductions, which will take effect from December 2024. The association also emphasised that these reductions would be gradual, in line with current changes in monetary policy and other economic factors, such as credit risk.

The implementation of the rate cuts incrementally has questions about the full immediate benefits. While the move is welcomed, the KBA has urged the CBK to consider further rate reductions to stimulate economic growth and increase access to credit. 

At the same time, banks have been advised to carefully assess customers’ risk profiles, considering factors such as non-performing loans and the economic challenges that could affect borrowers’ ability to repay their debts.

As part of its initiative to address the issues impeding credit growth, the KBA is engaging with the government to tackle challenges, including the review of risk-based pricing models, resolving delayed payments to businesses, and addressing the backlog of litigation affecting credit expansion.

This latest development follows the CBK’s decision in early December to lower its base lending rate for the third consecutive month, from 12% in October to 11.25%. The CBK attributed this reduction to stable inflation, which stands at 2.8%, driven in part by a decline in the prices of goods and services.