South Africa’s financial giant, Nedbank Group Limited, has launched a bid to acquire a controlling 66% stake in Kenya’s NCBA Group PLC, marking a significant move to expand its footprint in East Africa. This proposed acquisition, valued at 1.4 times NCBA’s book value, will make NCBA a subsidiary of Nedbank, with the remaining 34% of shares continuing to be traded on the Nairobi Securities Exchange (NSE).
The announcement, made on January 21, 2026, comes as Nedbank seeks to capitalize on Kenya’s position as a regional financial hub and extend its presence beyond Southern Africa. Nedbank’s decision to target NCBA is driven by the latter’s strong market presence in Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast, and its well-established infrastructure that includes 122 branches across the region. With this acquisition, Nedbank aims to tap into the high-growth East African economy, which is supported by a young population, stable macroeconomic performance, and a growing technology sector.
NCBA Group Managing Director John Gachora hailed Nedbank as an ideal partner for scaling up NCBA’s operations, particularly in the Democratic Republic of Congo (DRC) and Ethiopia. Gachora emphasized that Nedbank’s strong balance sheet and market leadership in South Africa would complement NCBA’s existing market leadership in East Africa, enabling further growth across the region.
Nedbank’s Chief Executive, Jason Quinn, pointed out that Kenya’s stable environment and sophisticated financial markets make it a perfect anchor for the bank’s expansion plans in East Africa. With a market share of 16-17% of loans and deposits in South Africa, and leadership in vehicle and commercial property finance, Nedbank is looking to leverage its strength to grow its influence in the region.
NCBA, which was formed from the merger of NIC Group and Commercial Bank of Africa, is one of East Africa’s most prominent financial institutions, serving over 60 million customers. With assets worth KSh 665 billion and annual disbursements of over KSh 1 trillion in digital loans, NCBA has established itself as a leader in digital banking and asset finance. Nedbank has stated that it will preserve the NCBA brand and governance structure, with plans to retain the current management team.
The proposed acquisition will be structured as a tender offer to NCBA shareholders, with the deal valued at 1.4 times the bank’s book value. Shareholders who participate in the offer will receive 20% of the consideration in cash and 80% in Nedbank shares listed on the Johannesburg Stock Exchange (JSE). The transaction, which is subject to regulatory approval from central banks in all relevant jurisdictions, is expected to close within six to nine months.
The move follows a surge in NCBA’s stock price in October 2025, after reports that South Africa’s Standard Bank Group, through its Kenyan unit Stanbic Holdings, had also shown interest in acquiring NCBA. However, Nedbank’s decision to make a formal offer has shifted the dynamics in the region, highlighting the increasing value of Kenyan banks within the East African financial landscape.
