South African financial giant Nedbank Group Ltd has launched a bid to acquire a 66 percent controlling interest in Kenya based NCBA Group Plc. The deal is valued at approximately 800 million dollars and represents a significant strategic move into the East African financial services landscape.
As part of the proposed tender offer, NCBA shareholders are set to receive 20 percent of the payment in cash. The remaining balance will be issued in Nedbank shares listed on the Johannesburg Stock Exchange. Following the completion of this transaction, 34 percent of NCBA shares will remain listed and active on the Nairobi Securities Exchange.
NCBA emerged from the merger of NIC Group and Commercial Bank of Africa and currently maintains operations in Kenya, Uganda, Tanzania, Rwanda, Ivory Coast and Ghana. The institution serves a massive customer base exceeding 60 million people through a network of 122 branches. With total assets estimated at 665 billion shillings, the bank is a dominant force in digital finance, facilitating over 1 trillion shillings in mobile loans every year. The group has maintained an average return on equity of 19 percent since 2021.
For Nedbank, this acquisition offers a direct entry point into one of the fastest growing economic blocs on the continent. While Nedbank is among the largest lenders in Africa, its current presence in the region is limited to a representative office. This partnership allows the South African lender to scale its footprint across East Africa without the immediate need for complex systems or operational overhauls.
John Gachora, the managing director of NCBA Group, noted that the balance sheet and sector specialized knowledge of Nedbank make the firm a suitable partner for regional scaling. The collaboration is expected to support future entry into markets such as Ethiopia and the Democratic Republic of Congo.
Nedbank Chief Executive Officer Jason Quinn characterized Kenya as a vital gateway to the region. He highlighted the strength of the local institutions, the maturity of the capital markets and the robust nature of the technology ecosystem as primary drivers for the investment.
The finalization of this deal remains subject to approval from regulators in the involved jurisdictions. Stakeholders expect the transaction to conclude within a period of six to nine months.
