Nedbank Targets 66% Stake in NCBA as It Eyes East Africa Growth

South Africa’s Nedbank Group has made a bold move into East Africa after submitting a strategic investment proposal to acquire a controlling stake in NCBA Group PLC, one of the region’s most influential financial institutions.

Under the proposed deal, Nedbank intends to buy about 66 per cent of NCBA’s ordinary shares through a tender offer to existing shareholders. If completed, the transaction would see NCBA become a subsidiary of Nedbank, while the remaining 34 per cent of shares stay listed on the Nairobi Securities Exchange (NSE), a structure that keeps the Kenyan lender firmly rooted in the local market.

The planned acquisition values NCBA at 1.4 times its book value, a strong vote of confidence in the group’s performance and prospects. Shareholders who accept the offer will receive 20 per cent of the consideration in cash, with the remaining 80 per cent paid in Nedbank shares, which are listed on the Johannesburg Stock Exchange.

Kenya as the gateway to East Africa

Beyond the numbers, the deal signals something bigger: Kenya’s growing status as the financial gateway to East Africa.

Nedbank, which is among Africa’s largest banks, has been clear that the acquisition is central to its strategy of expanding beyond Southern Africa into high-growth markets. East Africa, with its young population, expanding middle class and fast adoption of technology, sits at the heart of that ambition.

“Kenya’s role as a regional financial hub, supported by strong institutions, sophisticated markets and a dynamic technology sector, makes it a natural anchor for Nedbank’s East African ambitions,” said Nedbank Chief Executive Jason Quinn.

He added that the wider region, including Uganda, Tanzania and Rwanda, offers “a stable operating environment, consistent macroeconomic performance and strong long term growth potential.”

Why NCBA matters

NCBA brings scale, reach and digital muscle to the table.

The group operates across Kenya, Uganda, Tanzania, Rwanda, the Ivory Coast and Ghana, with 122 branches serving more than 60 million customers. It holds Ksh 665 billion in assets, disburses over Ksh 1 trillion in digital loans every year, and has delivered an average return on equity of about 19 per cent since 2021.

Its strengths in digital banking, asset finance and investment banking make it an attractive partner for a global player looking to grow fast in Africa.

NCBA Group Managing Director John Gachora described Nedbank as a natural fit.

“Nedbank is an ideal partner for our growth in the East Africa region,” he said.
“Their strong balance sheet will help us scale in our current markets, while also exploring new opportunities such as the DRC and Ethiopia. We are proud of the brand we have built and look forward to making it central to Nedbank’s East Africa expansion.”

What changes

One key assurance likely to calm investors, staff and customers is Nedbank’s commitment to keep NCBA largely as it is.

According to the statement, Nedbank intends to preserve NCBA’s brand, governance structures, management team and operating model, with decisions on customers and human capital remaining locally anchored. Since Nedbank currently only has a representative office in East Africa, there will be no complex in country system integrations.

At the same time, both sides expect major synergies. Nedbank will bolster NCBA’s corporate and investment banking capabilities by leveraging its global reach and sector expertise, while NCBA gains access to deeper capital pools, broader talent, and cross-border opportunities.

For staff, the deal opens doors to training and career growth across multiple geographies. For customers, it promises larger lending capacity and enhanced banking capabilities.

A regional play with continental ambitions

The combined platform positions Kenya as a launchpad into a region with an estimated population of 190 million people and a GDP nearing USD 300 billion. Beyond East Africa, Ethiopia and the Democratic Republic of Congo are firmly on the radar, markets with massive populations and long-term growth potential.

The transaction is subject to regulatory approvals from central banks across the affected countries and is expected to close within six to nine months.

If approved, the deal will rank among the most significant cross-border banking transactions in recent years and will be a clear signal that global capital is betting big on Kenya and the wider East African economy.