South Africa’s Nedbank Group has completed its acquisition of a 66% controlling stake in Kenya’s NCBA Group, gaining a foothold in East Africa’s banking market as it seeks to expand its presence across the continent.
The transaction, announced on October 19, makes NCBA a subsidiary of Nedbank while allowing the Kenyan lender to retain its listing on the Nairobi Securities Exchange. Public shareholders will hold the remaining 34% stake.
The deal connects Nedbank’s established Southern African operations with NCBA’s regional network, giving the South African lender access to a banking group operating in Kenya, Uganda, Tanzania, Rwanda and Ivory Coast. NCBA serves more than 60 million customers through a network of 122 branches, according to the announcement.
The acquisition provides Nedbank with an entry point into East Africa through Kenya, whose capital markets, technology sector and financial institutions make it a strategic base for regional expansion.
For NCBA, the transaction brings the backing of a larger banking group as it seeks to expand its regional footprint and develop more sophisticated financial products, particularly in digital banking, asset finance and investment banking.
“This landmark transaction establishes a significant presence for Nedbank in East Africa and marks a decisive step forward in our African growth strategy,” Nedbank Chief Executive Officer Jason Quinn said.
He said linking the two banking platforms would create opportunities for clients and shareholders while supporting trade and investment across the continent.
NCBA Chief Executive Officer John Gachora said the partnership would strengthen the lender’s ability to pursue opportunities across East Africa.
“The name is the same, the people are the same, but the ambition and capabilities are tremendously magnified,” Gachora said.
The transaction follows strong shareholder participation in Nedbank’s offer. NCBA shareholders tendered 1.316 billion shares, representing 79.9% of the lender’s issued shares, exceeding Nedbank’s targeted acquisition of 66%. Applications were scaled back proportionately to bring Nedbank’s eventual holding to its intended level.
NCBA said its brand, Nairobi headquarters, local leadership, branches, digital channels and day-to-day banking arrangements would remain unchanged following the transaction. The lender expects the partnership to create opportunities for cross-border services, skills development and product innovation.
NCBA shares are scheduled to be suspended from trading from on or about the close of business on October 21 until November 2 to allow reconciliation of the share register. The transfer of shares through a block trade on the Nairobi Securities Exchange and settlement of the transaction are scheduled for November 3.
The deal comes as African banking groups seek to build scale across regional markets, where cross-border trade, investment and demand for digital financial services offer opportunities for lenders with established customer bases and distribution networks.
For Nedbank, the investment provides a platform to extend its reach beyond Southern Africa. For NCBA, it offers access to a broader financial services network while preserving its local operating structure and public-market presence.
