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South Africa’s Nedbank Group Limited has launched a formal offer to buy a 66% controlling stake in Kenya’s NCBA Group PLC. Nedbank says this bid is part of its strategy to grow beyond Southern Africa into East Africa’s fast-growing markets.
The offer values the transaction at about 13.9 billion South African rand (between $855 and 856 million), making it one of the largest cross-border banking deals in East Africa in recent years.
Shareholder compensation will be paid as 20% cash and 80% Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE). On the other hand, the remaining 34% of NCBA shares will continue to be publicly traded on the Nairobi Securities Exchange (NSE) after the deal.
NCBA, which was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa (CBA), will become a subsidiary of Nedbank but maintain its own brand, management, and listing. The deal values NCBA at about 1.4 times its book value, representing a premium for current shareholders.
Notably, NCBA is currently operating in Kenya, Uganda, Tanzania, Rwanda, Ghana, and Ivory Coast, and serves over 60 million customers and has about 122 branches across the region. It is one of East Africa’s most significant financial services groups outside of Kenya’s largest lenders.
Before this acquisition bid, NCBA was one of the most valuable Kenyan banks listed on the NSE, with ownership by several investment vehicles including Kenyan business families. Kenya is seen as a gateway to East African markets because it has strong economic growth, deep financial markets, and favorable demographics.
Another important you need to note is that this merger is still subjected to regulatory approvals from central banks and other financial regulators in both Kenya and South Africa, with final approval be completed by Q3 of 2026.
According to Nedbank, the combination of capital strength and expertise with NCBA’s regional foothold will help drive future of banking growth and innovation beyond borders. On the other hand, the deal supports NCBA’s plans to scale operations in existing markets and explore new ones, such as Ethiopia and the Democratic Republic of Congo.
