South Africa’s Nedbank to Acquire Majority Stake in Kenya’s NCBA for $856 million
South African financial giant Nedbank Group Limited has issued a formal Notice of Intention to acquire a controlling 66% stake in NCBA Group PLC for $856 million.
The proposed deal, structured as a Tender Offer to existing shareholders, values the Nairobi-based lender at a multiple of 1.4 times its Book Value. If successful, NCBA will transition into a subsidiary of Nedbank while maintaining its listing on the Nairobi Securities Exchange (NSE) with a 34% free float.
The offer provides a unique cross-border settlement structure for NCBA shareholders, where 20% of the consideration will be paid in liquid cash while the remaining 80% will be settled through the issuance of Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE). This hybrid model allows local investors to retain exposure to the banking sector while diversifying their portfolios into the South African market.
For Nedbank, the acquisition represents a decisive step in its Managed Evolution strategy to diversify revenue streams outside of Southern Africa. Currently, Nedbank only maintains a representative office in the region.
“Kenya’s role as a regional financial hub makes it a natural anchor for our East African ambitions,” stated Jason Quinn, Nedbank CEO. “We identified East Africa as a key growth region characterized by a young, urbanizing population and a vibrant business community.”
NCBA, formed from the 2019 merger of NIC Group and CBA, has become a digital banking powerhouse. The bank currently serves over 60 million customers across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana. The group’s financial health is evidenced by assets totaling KES 665 billion and an average 19% return on equity since 2021, supported by a digital lending platform that moves over KES 1 trillion annually.
Despite the change in ownership, both parties emphasized stability. The NCBA brand, local management team, and governance structures will remain intact. John Gachora, NCBA Group Managing Director, noted that Nedbank’s top-tier ESG ratings and massive lending capacity would provide the firepower needed to scale into new markets like Ethiopia and the DRC.
The deal comes at a time of heightened consolidation in Kenya’s banking sector. Analysts suggest that the entry of a JSE-listed heavyweight will intensify competition for Corporate and Investment Banking (CIB) business, where Nedbank intends to leverage its global sectoral expertise.
The transaction is subject to regulatory approvals from the Central Bank of Kenya and other regional regulators, with an expected closing window of six to nine months.
[Secure Your Seat at Africa Tech Summit Nairobi 2026 | February 11–12 here] Use code TTRENDS10 at checkout to save 10% on your pass and join the leaders building Africa’s $1 trillion cross-border payment future.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
