Access Bank to pay extra N1.29bn to Associates of Daniel Moi, former Kenyan President

Lagos-based Access Bank Plc is set to pay out an extra N1.29 billion (Sh370.85 million) to close associates of Daniel Moi, the former Kenyan president who served between 1978 and 2002. This is the remaining balance the tier-1 Nigerian bank is required to pay following its acquisition of 99.98% stake in Transnational Bank Ltd earlier this year.

In July 2020, Access Bank announced that it had completed the acquisition and paid out the sum of N4.27 billion (Sh1.21 billion) at the time. The additional N1.29 billion shall now bring the total payout to N5.52 billion or Sh1.58 billion.

“Transnational Bank’s shareholders received a total cash consideration offer Sh1.62 billion (N5.63 billion) comprising of a cash consideration payment of Sh1.22 billion (N4.23 billion) (and) a deferred payment of Sh410 million (N1.408 billion) to be made to shareholders at the expiration of two years. For the purpose of the bargain purchase computation, this deferred consideration has been carried at its present value of Sh370 million (₦1.29 billion) using a discount rate of 4.24 percent,” Access Bank disclosed in a regulatory filing that was seen by Business Elites Africa. The notice also noted that Access Bank received a discount of 4.24% in the deal.

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Why are Daniel Moi’s Associates Getting Paid N1.29 billion?

According to checks by Business Elites Africa, Transnational Bank Ltd was majority-owned by close associates of Daniel Moi who was the longest-serving Kenyan President. These associates include former Kenyan Vice President, George Saitoti and Joshua Kulei who served as a Personal Assistant to the former Kenyan leader. See a breakdown of the former majority stakeholders below.

• Sovereign Trust which is associated with Mr Kulei held 23.03% shareholding in Transnational.
• Simbi Investors which is linked with Mr Nyachae, a former Cabinet minister during Mr Moi’s administration, held 4.11% stake in the bank.
• Losupuk Ltd which is associated with Mr Saitoti (the former Kenyan Vice President who is dead now) also held 2.79%.
• Archers and Wilcock Ltd held 23.75% stake.
• Kenyerere Ltd which is associated with Jared Kangwana also held a 2.15% stake.