South Africa’s Nedbank Group Ltd. has proposed acquiring a 66% stake in Kenya’s NCBA Group Plc in a deal valued at about $800 million, marking a major push into East Africa’s financial sector.
Under the tender offer, NCBA shareholders would receive 20% of the consideration in cash and the remainder in Nedbank shares listed on the Johannesburg Stock Exchange. The remaining 34% of NCBA shares would continue trading on the Nairobi Securities Exchange.
NCBA, formed from the merger of NIC Group and Commercial Bank of Africa, operates across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast and Ghana, serving over 60 million customers through 122 branches. The bank holds roughly KES 665 billion ($4.7 billion) in assets and disburses more than KES 1 trillion in digital loans annually, with an average return on equity of around 19% since 2021.
Nedbank, one of Africa’s largest banks, currently has a limited East African presence through a representative office. The acquisition would provide the Johannesburg-listed lender with a platform to expand its footprint in high-growth East African markets without immediate systems or operational integration.
John Gachora, NCBA Group managing director, said Nedbank’s balance sheet and sector expertise make it an “ideal partner” for regional growth, including potential expansion into Ethiopia and the Democratic Republic of Congo.
Jason Quinn, Nedbank CEO, described Kenya as a strategic gateway for East Africa, citing the country’s strong institutions, capital markets, and technology ecosystem.
The transaction is subject to regulatory approvals across relevant jurisdictions and is expected to close within six to nine months.