The Central Bank of Kenya Governor Patrick Njoroge on Friday okayed the selling of Transnational Bank, which is associated with the Moi family.
“The Cabinet Secretary for the National Treasury and Planning has also approved the acquisition of up to 100 per cent of the issued share capital of Transnational Bank Plc by Access Bank Plc,” Dr Njoroge announced.
Nigerian biggest lender, the Access Bank, will now take over the Middle-tier lender that has been in the Kenyan market for decades.
Dr Njoroge said the deal will strengthen the resilience of Kenya’s banking sector given that Access Bank is the largest lender in Nigeria with an asset base of about Sh1.61 trillion ($16.10 billion).
Acquisition of Transnational bank brings to an end the existence of the 35-year-old Kenyan bank with 28 branches. Its top owners include companies owned by close associates of Moi including Joshua Kulei, Simeon Nyachae and late former vice-president George Saitoti.
The bank now joins the likes of Imperial bank, Chase bank among others which have changed ownership in recent years.
Also, to increase their asset base, NIC bank merged with CBA bank associated with the Kenyatta's to form NCBA.