This archive report was first published on 12 July 2020.
On July 12, 2020, Nigerian tycoon Herbert Wigwe made headlines in Kenya's financial sector by acquiring a majority stake in Transnational Bank, a move that is expected to increase the bank's market share.
Wigwe, the founder and head of Access Bank, the largest bank in Nigeria, paid Sh1.4 billion in cash to acquire the 97 percent stake, which was previously held by close associates of former President Daniel Arap Moi.
Business Daily reports that Wigwe's acquisition is a significant milestone in the bank's history, marking the first time a Nigerian entity has acquired a Kenyan bank.
"It will be paid for in cash so we have taken out the existing shareholders and we will basically inject a bit more equity into the institution," Wigwe is quoted by Business Daily.
Transnational Bank, which has 28 branches across the country, had a market share of 0.25 percent as of December 2018.
The shares were held by Moi allies, including Joshua Kulei (23.03 percent), Simeon Nyachae (4.11%), and former Vice-President the late George Saitoti (2.79%), among others.
Access Bank, which has operations in eight African countries, one in the UK, and offices in China, UAE, and India, becomes the third Nigerian entity to penetrate the East African banking market.
