Kenya’s second-largest bank sells its subsidiary to a Nigerian buyer

The Kenyan second largest bank, KCB Group, has sold its subsidiary National Bank of Kenya (NBK) to Nigeria’s Access Bank Group.

Kenyan Commercial Bank Group (KCB Group) confirmed the purchase in a statement on Wednesday.

KCB Chief Executive Paul Russo said the deal was struck at 1.25 times book value, according to the Reuters news agency.

“The right thing to do is to accept a firm offer from Access Group,” he said.

KCB acquired then state-owned NBK in a rescue deal in October 2019, after the bank posted recurring losses.

But KCB has struggled to resolve the problems it inherited.