Access Bank Kenya

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Access Bank (Kenya) PLC
Company typeSubsidiary of Access Bank Group
IndustryFinancial services
Founded1984
HeadquartersNairobi, Kenya
Key people
Ade Bajomo
Chairman
David Aluko
Managing Director
ProductsLoans, Checking, Savings, Investments, Debit Cards
RevenueIncrease Aftertax: US$683,549 (KES:68.03 million) (2015)
Total assetsUS$113.6 million (KES:9.66 billion) (2013)
Websitekenya.accessbankplc.com

Access Bank Kenya (ABK), whose complete name is Access Bank (Kenya) PLC, formerly Transnational Bank Kenya PLC, is a commercial bank in Kenya. It is licensed and regulated by the Central Bank of Kenya, the national banking regulator.[1]

History[edit]

TNB was established as a non-bank financial institution (NBFI) in 1984, under the name Transnational Finance Company (TNFC). TNFC provided loans, including lease-purchase arrangements to depositors and non-depositors. In 1985, following the issuance of a commercial banking license by the Central Bank of Kenya, the national banking regulator, the company began banking operations under its current name in Nairobi and Mombasa. At first other locations in the country continued to operate as TNFC offices. Between 1985 and 1996, all TNFC activities were merged with TNB and the TNFC brand was closed. The bank has one subsidiary; TNB Forex Bureau, located at Moi International Airport in Mombasa. The bank is also affiliated with Western Union, the American International money-transfer service.[2] In 2009, TNB introduced Internet banking and mobile banking through mobile telephones.[3]

Overview[edit]

The bank is a medium-sized commercial bank in Kenya, East Africa's largest economy. As of December 2015, its assets were valued at about US$105.84 million (KES:10.53 billion), with shareholders' equity of about US$20.43 million (KES:2.033 billion).[4]

Branch network[edit]

The bank maintained 17 networked branches in Kenya, as of December 2013.[5]

Ownership[edit]

The shares of stock of Transnational Bank are privately held by Kenyan institutions and individuals. As of December 2015, the major shareholders in the bank were as depicted in the table below:[4]

Trans National Bank Kenya Stock Ownership
Rank Name of Owner Percentage Ownership
1 Archers and Wilcock Limited 23.75
2 Sovereign Trust Limited 23.03
3 Duggan Limited 15.53
4 Pyramid Trustee Limited 15.12
5 November Nominees Limited 07.28
6 Simbi Investors 04.11
7 Losupuk Limited 02.79
8 Kenyerere Limited 02.15
9 Lohan Investments Limited 01.42
10 Others 04.80
Total 100.00

Acquisition[edit]

On 31 October 2019 the Business Daily Africa newspaper reported that Access Bank Nigeria, had received regulatory approval from the Competition Authority of Kenya (CAK) to acquire 93.57 percent in Transnational Bank of Kenya. The transaction had yet to receive the approval of the Central Bank of Kenya, as of October 2019.[6]

In January 2020, the Central Bank of Kenya gave approval for Access Bank Group to acquire up to 100 percent shareholding in Transnational Bank.[7] In August 2020, the take-over was consummated after the new owners paid KES:1.4 billion (approx. US$13 million) to buy-out the previous shareholders. The bank re-branded to Access Bank (Kenya) PLC.[1]

Aborted merger[edit]

When the deal by Access Bank Group to acquire Sidian Bank is concluded, it is expected that the new acquisition will be merged into Access Bank Kenya. When that happens, the combined bank is expected to have assets valued at over KSh57.1 billion (approx. US$492 million), with loans totaling KSh26.6 billion (approx. US$229 million). The deal requires regulatory approval in Kenya and Nigeria.[8]

In January 2023, Centum Investment Company Plc. called off the planned sale of the 83.4 percent shareholding that it owns in Sidian Bank to Access Bank Group. The time allocated to negotiations lapsed before agreement could be reached.[9]

See also[edit]

References[edit]

  1. ^ a b John Mutua (31 August 2020). "Access renames Moi-linked bank after Sh1.4bn buyout". Business Daily Africa. Nairobi. Retrieved 31 August 2020.
  2. ^ David Herbling (3 August 2014). "Trans-National Bank In KSh1 Billion Private Share Sale Plan". Business Daily Africa. Nairobi. Retrieved 3 August 2014.
  3. ^ James Anyanzwa (5 March 2009). "Trans-National Bank Launches Internet Banking". The Standard (Kenya). Retrieved 3 August 2014.
  4. ^ a b TNB (30 March 2016). "Transnational Bank Limited Annual Report & Financial Statements As At 31st December 2015" (PDF). Nairobi: Transnational Bank (TNB).
  5. ^ Transnational Bank (31 December 2013). "31 December 2013 Audited Financial Report". Nairobi: Transnational Bank. Retrieved 3 August 2014.[permanent dead link]
  6. ^ Patrick Alushula (31 October 2019). "Moi Family-Linked Transnational Bank Sold To Top Nigerian Lender". Business Daily Africa. Nairobi. Retrieved 31 October 2019.
  7. ^ The EastAfrican (17 January 2020). "Nigerian lender gets nod to acquire 100pc stake in Moi-linked Transnational Bank". The EastAfrican. Nairobi. Retrieved 31 August 2020.
  8. ^ Otiato Guguyu (8 June 2022). "Centum sells Sidian Bank for Sh4.3bn to Nigerian lender". Business Daily Africa. Nairobi, Kenya. Retrieved 8 June 2022.
  9. ^ George Obulutsa and Kenneth Maxwell (13 January 2023). "Kenya's Centum calls off sale of Sidian Bank majority stake to Nigeria's Access Bank". Reuters. Retrieved 12 February 2024.
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