South Africa’s Nedbank Group has completed the acquisition of a 66 per cent controlling stake in NCBA Group, marking a major shift in ownership of one of East Africa’s largest banking groups
The transaction, announced on October 19 following receipt of the required regulatory approvals, makes NCBA a subsidiary of the Johannesburg-listed lender.
However, NCBA will retain its brand, Nairobi headquarters, local leadership and listing on the Nairobi Securities Exchange (NSE), with the remaining 34 per cent stake continuing to be held by public investors.
The acquisition is valued at approximately 13.9 billion South African rand, equivalent to about Sh110 billion at prevailing exchange rates.
Under the offer, 80 per cent of the consideration is in newly issued Nedbank shares, with the remaining 20 per cent paid in cash.
The structure gives Nedbank control of NCBA while allowing shareholders who accept the offer to participate in the South African lender’s future performance.
The deal gives the South African banking giant an established platform in East Africa without having to build a banking network from scratch, positioning it to tap into a region with growing demand for credit.
The transaction provides NCBA access to a larger banking group’s capital, expertise and regional connections as it pursues its next phase of expansion.
NCBA Group managing director John Gachora described the acquisition as an endorsement of the bank’s business and regional ambitions, saying Nedbank’s backing would help it expand its footprint and introduce more sophisticated financial products.
“The name is the same, the people are the same, but the ambition and capabilities are tremendously magnified,” he said.
The acquisition comes as NCBA emerges from a period of strong financial performance, making it an attractive entry point for Nedbank into East Africa’s competitive banking industry.
The lender ranked fourth in Kenya in terms of asset value, reported a net profit of Sh23.4 billion for the year ended December 2025, up seven per cent from Sh21.9 billion in 2024.
Its total assets rose eight per cent to Sh716 billion, while customer deposits increased six per cent to Sh532 billion. Operating income grew 17 per cent to Sh73.3 billion.
The lender’s digital banking and asset finance businesses are among its key attractions.
It disbursed Sh1.4 trillion in digital loans during 2025, a 33 per cent increase, while its digital business contributed 32 per cent of group profitability.
It also reported maintaining a market share of more than 30 per cent in asset finance since 2020, underlining its position in vehicle and equipment financing for businesses and consumers.
The deal also offers NCBA an opportunity to access Nedbank’s international network and larger-ticket funding capabilities, potentially allowing it to finance bigger corporate transactions and support regional businesses seeking to expand beyond their domestic markets.
For NedBank, the acquisition represents a strategic shift towards building a stronger presence in East Africa while consolidating its established Southern African operations.
The group already operates across Southern Africa, including Namibia, Zimbabwe, Mozambique, Lesotho and Eswatini, and maintains offshore centres in London, Dubai, the Isle of Man and Jersey.
Nedbank chief executive Jason Quinn said the transaction establishes a significant presence in East Africa and advances the lender’s strategy to connect banking platforms across the continent.
“The investment also follows Nedbank’s decision to refocus its continental strategy on markets where it can own and manage banking operations.”
Its 2025 annual results described East Africa as a growth region for the group, alongside its established Southern African markets.
The transaction also reflects the growing strategic importance of Kenya’s financial services industry.
According to the Central Bank of Kenya’s 2025 Bank Supervision Annual Report, the banking sector’s net assets increased by 10.3 per cent to Sh8.35 trillion in December 2025, from Sh7.57 trillion a year earlier.
Customer deposits rose 11.6 per cent to Sh6.12 trillion, while sector-wide profit before tax increased 17.7 per cent to Sh306.3 billion.
NCBA has said its customer-facing operations will continue as usual, with its brand, local leadership, branches, products and digital channels remaining unchanged.
The offer attracted tenders for 1.316 billion NCBA shares, representing 79.9 per cent of issued shares, exceeding Nedbank’s targeted acquisition of approximately 66 per cent.
Applications were scaled back proportionately to achieve the intended controlling stake.
Under the offer terms, accepting shareholders are entitled to a combination of cash and newly issued Nedbank shares, subject to the transaction’s settlement arrangements.
The offer equates to Sh105 per NCBA share in consideration value under the prescribed cash-and-share structure, although the actual value received through Nedbank shares will depend on the applicable terms and the value of those shares.
