South Africa’s Nedbank has made a bold move into East Africa, offering to buy a controlling stake in Kenya’s NCBA Group in a deal that values the lender at about $856 million and positions the region for one of its most consequential banking takeovers in years.
The Johannesburg listed bank said it has tabled an offer to acquire 66 percent of NCBA Group for 13.9 billion rand, equivalent to roughly $855.5 million. The proposal combines cash and equity, with Nedbank planning to pay 20 percent in cash and the remaining 80 percent in newly issued ordinary shares. The share component would be priced using a reference value of 250 rand per Nedbank share.
If completed, the transaction would turn NCBA into a subsidiary of Nedbank while keeping the Kenyan lender listed on the Nairobi Securities Exchange. The remaining 34 percent of NCBA shares would continue to trade publicly, allowing minority investors to retain exposure to the business.
Nedbank said NCBA would maintain its brand identity and local management team, a structure designed to reassure customers and regulators while ensuring operational continuity across markets.
Jason Quinn, Nedbank’s chief executive, described the offer as a strategic step in the bank’s long term expansion across eastern and southern Africa. He said East Africa stands out because of its young population, growing middle class, improving economic fundamentals and its importance as a trade corridor linking Africa to the Middle East and Asia.
NCBA is no small prize. The group was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa, a deal that created one of the region’s largest financial institutions.
Today, NCBA operates banking subsidiaries in Kenya, Uganda, Tanzania and Rwanda, while running digital banking platforms in markets such as Ghana and Ivory Coast. It says it serves more than 60 million customers through a network of 122 branches, with a strong footprint in corporate banking, asset finance and mobile led services.
The proposed takeover has also drawn attention to NCBA’s ownership structure, which is unusually concentrated for a publicly listed bank. A handful of investment vehicles control large blocks of shares, meaning the deal could deliver sizable payouts to a small group of influential shareholders.
