Kenya Tops Africa’s M&A Market on Strength of Big-Ticket Deals

Kenya has emerged as Africa’s leading mergers and acquisitions market by value after companies recorded transactions worth Ksh 186.4 billion in the first half of 2026.

The strong performance was largely driven by major banking transactions, putting Kenya ahead of markets that recorded more individual deals. According to DealMakers AFRICA, Kenya recorded 25 transactions between January and June, compared with 39 in Nigeria.

Despite having fewer deals, Kenya’s total value was more than 13 times Nigeria’s Ksh 13.7 billion. The figures show how a small number of large acquisitions can dramatically change the fortunes of a country’s corporate dealmaking market.

Banking deals drive growth

The biggest transaction was South Africa’s Nedbank Group’s proposed acquisition of a 66 per cent stake in NCBA Group for about Ksh 110.7 billion.

Nedbank announced the deal in January as part of its plans to strengthen its presence in East Africa. The transaction is structured as a combination of cash and Nedbank shares, with NCBA remaining listed on the Nairobi Securities Exchange.

The acquisition alone represented a large share of Kenya’s total M&A value during the period, showing just how heavily the country’s ranking was influenced by major financial sector transactions.

Absa Group also announced plans to increase its ownership of Absa Bank Kenya by up to 16.5 per cent through a tender offer valued at about Ksh 30.8 billion. The move was another sign of confidence by a major South African financial institution in the Kenyan banking market.

“Kenya is a strategically important market for Absa Group,” said Charles Russon, the group’s executive responsible for Africa regions.

The financial services sector has therefore become a major source of corporate consolidation as banks and other investors look for greater scale, larger customer bases and stronger regional positions.

Kenya beats bigger markets

DealMakers AFRICA’s figures show that Kenya’s performance was unusual in a continent where deal activity generally slowed during the first half of the year.

Excluding South Africa, African M&A deals were valued at Ksh 722.5 billion, a 10 per cent decline from the same period last year. The number of transactions also fell by about 13 per cent to 166.

South Africa recorded three deals worth Ksh 74 billion, while Egypt had 18 transactions valued at Ksh 18.2 billion.

West Africa recorded the highest number of transactions with 55 deals, followed by East Africa with 39 and North Africa with 34.

Nigeria still led in the number of individual transactions, but its relatively low total value shows that deal volume does not always translate into market leadership.

Investors remain cautious

DealMakers AFRICA said investors are still interested in African businesses, although uncertainty has made them more selective.

“Geopolitical developments have heightened uncertainty,” the firm noted, adding that buyers and investors had become more cautious about transactions in the region.

Energy and mining also remained major attractions, with several large transactions in Angola, Ghana and Equatorial Guinea contributing significantly to the continent’s deal value.

For Kenya, however, the first-half figures underline the growing importance of its financial sector and its position as a regional business hub. The key question now is whether the country can maintain the momentum beyond a few large banking deals.

The completion of major transactions such as the Nedbank-NCBA deal, alongside fresh investments in banking, technology, infrastructure and other sectors, will determine whether Kenya’s M&A lead becomes a lasting trend or simply reflects an unusually strong first half of the year.