Nedbank Group, Africa’s 5th largest lender’s proposed acquisition of a 66 %percent stake in Kenya’s NCBA Group has moved closer to completion after shareholders tendered 1.316 billion shares, representing 79.9% of NCBA’s issued share capital, when the offer closed early this month.
The strong response exceeded the transaction’s target size, meaning excess applications will be scaled back before settlement, with Nedbank ultimately acquiring 66 percent of NCBA while 34 percent remains publicly held.
Most regulatory approvals have already been secured, with the remaining clearances expected by the end of the third quarter of 2026.
The successful completion of the transaction will result in NCBA becoming a subsidiary of Nedbank, while the remaining 34% of NCBA shares will continue to trade publicly on the Nairobi Securities Exchange (NSE).
The proposed consideration will be structured as 20% cash portion and 80% new Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
Nedbank Group CE Jason Quinn said the proposed acquisition represents a milestone in Nedbank’s strategy to grow Nedbank’s southern and East African footprint.
“The proposed deal brings together two organisations with highly complementary strengths. NCBA offers a strong brand presence, an extensive regional network, advanced digital capabilities and deep customer reach which naturally aligns with Nedbank’s established Corporate and Investment Banking expertise, cross‑border structuring capabilities, and strong balance sheet.
By combining NCBA’s substantial local presence and Nedbank’s capital base, expertise and enduring commitment to Africa, we see a compelling platform for sustainable growth in the region.”
Why Nedbank is targeting Kenyan banking business
Nedbank Group, has identified East Africa as a region of significant strategic importance, underpinned by strong macroeconomic fundamentals; the size of its economy; a large and growing population; attractive growth prospects; and the primary trade corridor that links Africa with the Middle East, India and Asia, all supported by a robust regulatory environment and relatively stable operating environment.
“We look forward to building a partnership that supports NCBA’s and our clients’ growth trajectories. This will further support economic development across the region while delivering attractive returns for all shareholders,” Quinn said.
NCBA will remain independently governed and retain its brand, local leadership team and NSE listing. As Nedbank currently operates only a representative office in the region, no in‑country operational integration is required.
NCBA, headquartered in Nairobi, operates across Kenya, Uganda, Tanzania, Rwanda, and offers digital banking services in Ghana and Ivory Coast.
Formed in 2019 through the merger of NIC Group PLC and Commercial Bank of Africa Limited, NCBA serves more than 60 million customers and has 122 branches, a strong digital lending franchise and a robust regional network.
It has an established reputation for innovation, advanced digital banking services, excellence in asset finance, investment banking expertise and a strong regional presence.
NCBA now manages KSh 665 billion in assets, disburses more than KSh 1 trillion in digital loans annually, and has delivered an average return on equity of approximately 19% since 2021.
The acquisition transaction is expected to be concluded by the third quarter of 2026.
Nedbank is one of the largest banks in Africa, offering wholesale and retail banking, as well as insurance, asset management and wealth management services and solutions to almost 8 million clients.
Through its Pan-African footprint, Nedbank Group is positioned to provide world-class sustainable financial solutions in the continent.
Africa’s banking sector stands as a testament to resilience and rapid technological adoption. The most successful and innovative banks on the continent are no longer mere followers of international trends; they are pioneers of digital transformation and financial inclusion.
Leading the charge is South Africa’s Standard Bank, which remains the continent’s largest by assets, followed closely by FirstRand and the National Bank of Egypt. These titans, alongside institutions like Absa and Nedbank, have navigated complex economic climates by pivoting towards mobile-first strategies and sustainable finance.
Nedbank has carved out a reputation as Africa’s green bank, leading the continent in sustainable finance and carbon-neutral operations. It is one of the largest financial services providers in South Africa, offering a highly integrated suite of wholesale and retail banking services.
The bank’s Managed Evolution technology strategy has successfully modernised its core banking systems, enabling faster product launches and enhanced data analytics.
By focusing on high-net-worth individuals and corporate sustainability, Nedbank continues to secure its position as a high-value, innovation-driven leader in the Southern African market.
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