South African banking group Nedbank has acquired 66% of NCBA Group, bringing it closer to taking control of one of East Africa’s major financial services groups.
The acquisition, which follows approval from the Central Bank of Kenya (CBK) on August 28, under Section 13 (4) of the Banking Act, will take effect once Nedbank and NCBA complete the transaction according to their agreed terms.
If completed, NCBA will become a subsidiary of Nedbank, while the remaining 34% of its shares will continue to trade publicly on the Nairobi Securities Exchange (NSE).
Nedbank is using NCBA to expand beyond Southern Africa
The acquisition is part of Nedbank’s strategy to strengthen its presence in East Africa, a region the South African bank has identified as important to its long-term growth.
Nedbank first announced its intention to acquire about 66% of NCBA in January 2026. The proposed transaction is valued at approximately R13.9 billion, based on Nedbank’s issue price at the time of the announcement. About 80% of the consideration would be paid in Nedbank shares, while 20% would be paid in cash.
The attraction for Nedbank is not just NCBA’s Kenyan business. NCBA already has operations in Kenya, Uganda, Tanzania and Rwanda, as well as a joint venture in Côte d’Ivoire, giving Nedbank an established network across several African markets.
Nedbank currently operates mainly across Southern Africa, including South Africa, Lesotho, Mozambique, Namibia, Eswatini and Zimbabwe. Taking control of NCBA would therefore give it a much stronger foothold in East Africa without having to build a comparable regional network from scratch.
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What Nedbank is getting through NCBA
NCBA was created in 2019 through the merger of NIC Group and Commercial Bank of Africa (CBA). The group has since developed into a diversified financial services company, with operations extending beyond traditional banking into areas such as investment banking, insurance, stockbroking and leasing.
NCBA also has a significant customer and branch network. The group operates 122 branches and serves more than 60 million customers across its markets, according to NCBA.
Its digital banking capabilities are another attraction for Nedbank. The South African bank has highlighted NCBA’s digital platform and regional customer reach as complementary to its own corporate and investment banking capabilities.
For Nedbank, the deal therefore provides access to an established East African banking operation, rather than simply adding another country to its list of markets.
What happens after the approval
The CBK has said it supports the transaction, noting that the acquisition should help maintain stability, strengthen resilience and promote competition in Kenya’s banking sector.
The regulatory approval is one of the final steps in a transaction that has been progressing since January. NCBA shareholders accepted the offer at a level that allowed Nedbank to reach its targeted 66% shareholding, with the offer results announced in July.
Once the remaining transaction requirements are completed, Nedbank will take effective control of NCBA, while public investors will continue to hold the remaining shares listed on the Nairobi Securities Exchange.
The deal would give Nedbank a significantly larger presence across East Africa while allowing NCBA to operate as part of a larger African banking group. For Kenya’s banking market, it also adds another major cross-border banking relationship at a time when financial institutions are increasingly expanding across African markets.
