KCB Group has reported a Sh3.1 billion gain following the sale of National Bank of Kenya to Access Bank, reflecting the difference between the sale price and the total amount the lender spent acquiring and recapitalising the bank.
The group finalised the disposal of its entire stake in National Bank in May last year in a deal estimated at about Sh13.2 billion, based on a transaction multiple of 1.25 times the lender’s book value as of December 2023.
Part of the proceeds from the transaction enabled KCB to issue a special dividend of Sh4 per share in mid-2025. The lender later doubled its final dividend for the year, lifting the total payout to shareholders to Sh7 per share from Sh3 in 2024.
KCB Group chief finance officer Lawrence Kimathi said the Sh3.1 billion gain represents the difference between the bank’s investment in National Bank and the amount paid by Access Bank.
However, he declined to reveal the total cost KCB incurred in acquiring and recapitalising NBK or the exact proceeds received from the sale.
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KCB initially acquired National Bank through a share swap deal valued at more than Sh5 billion, completed in early 2020. During its ownership, the group injected over Sh8 billion into the lender, including a Sh3.45 billion loan-to-equity conversion in 2022, largely to help the bank meet regulatory capital requirements.
Beyond the cash proceeds, KCB also benefited from removing NBK from its balance sheet, as the subsidiary had contributed significantly to the group’s non-performing loans.
After the divestiture, the group recorded its lowest non-performing loan ratio since December 2021 for the financial year ending December 2025. Gross non-performing loans declined by 6.15 percent to Sh211.8 billion from Sh225.6 billion a year earlier.
Group chief executive Paul Russo said the exit from National Bank allows the lender to concentrate its efforts on its core local unit, KCB Bank Kenya.
The bank plans to retain the funds from the sale as it explores expansion opportunities in the region. KCB has maintained interest in entering the Ethiopian banking market while ruling out acquisitions within Kenya, saying its domestic unit has sufficient capacity to grow organically.
Currently, the group operates across six regional markets including the Democratic Republic of Congo, Rwanda, Tanzania, Uganda, South Sudan and Burundi.
