KCB, the largest Kenyan lender in terms of assets, has secured the go-ahead from shareholders for the proposed acquisition of National Bank of Kenya (NBK).

The deal involves the acquisition of 100% NBK shares by KCB. It was first announced last month.

Financial terms of the deal were not disclosed.

As per the agreed terms of the transaction, ten ordinary shares of NBK will be exchanged for one KCB ordinary share.

The acquisition is now pending approvals from the shareholders of NBK and regulators.

The combined group is expected to have a balance sheet of $9.88bn by the end of 2022, according to media reports.

KCB chairman Andrew Wambari said: “The acquisition is an opportunity to strengthen the deposit base and lending capacity, increase cost efficiencies due to economies of scale and boost transactional revenue through leveraging of technology.”

The merger scene in Kenyan banking sector has picked up pace.

Earlier this year, Kenya’s National Industrial Credit Bank (NIC) announced plans to merge with domestic peer Commercial Bank of Africa (CBA).

At the same time, Kenya’s Equity Group agreed to acquire Atlas Mara’s stake in banks in Rwanda, Zambia, Mozambique and Tanzania.

In 2017, Diamond Trust Bank Kenya acquired the entire stake in Habib Bank Limited Kenya.