Nedbank Group has moved a step closer to completing its planned acquisition of a majority stake in East African banking giant NCBA Group PLC after securing approval from the Central Bank of Kenya.
This marks a key regulatory milestone in a transaction valued at approximately R13.9-billion.
The South African financial services group announced in January 2026 its intention to acquire about 66% of NCBA, one of East Africa’s leading financial services groups, as part of its strategy to expand its presence across the continent. The proposed transaction will see NCBA become a subsidiary of Nedbank, while the remaining 34% stake will continue to trade on the Nairobi Securities Exchange (NSE).
Under the terms of the deal, the purchase consideration will be settled through a combination of 20% cash and 80% newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
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Nedbank Group chief executive Jason Quinn previously described the proposed acquisition as a significant step in the bank’s ambition to strengthen its footprint in southern and East Africa.
“The proposed deal brings together two organisations with highly complementary strengths,” Quinn said when the transaction was announced. He highlighted NCBA’s strong regional presence, digital banking capabilities, and extensive customer reach, alongside Nedbank’s corporate and investment banking expertise, cross-border structuring capabilities, and strong balance sheet.
The latest approval from the Central Bank of Kenya marks one of the most important regulatory requirements for the transaction.
“Nedbank Group is pleased to advise shareholders and noteholders that the Central Bank of Kenya has granted NCBA Group approval for the transaction,” the bank said in an update to investors.
The lender added that most of the regulatory approvals required for the acquisition have now been obtained, with the remaining approvals expected by the end of the third quarter of 2026.
The offer remains subject to the fulfillment or waiver of certain conditions outlined in the offer document.
Nedbank’s strategic expansion into East Africa
Nedbank has identified East Africa as a key growth market due to its strong economic fundamentals, expanding population, attractive growth prospects, and strategic trade links with the Middle East, India and Asia.
The acquisition would provide Nedbank with immediate scale in the region through NCBA’s established operations across Kenya, Uganda, Tanzania and Rwanda, as well as digital banking services in Ghana and Ivory Coast.
Headquartered in Nairobi, NCBA was formed in 2019 through the merger of NIC Group PLC and Commercial Bank of Africa Limited. The group serves more than 60 million customers, operates 122 branches, and has built one of the region’s largest digital lending platforms.
NCBA manages approximately KES665-billion (about R84.4-billion) in assets, disburses more than KES1-trillion (around R126.9-billion) in digital loans annually, and has delivered an average return on equity of roughly 19% since 2021.
Importantly, NCBA will retain its brand, local leadership team, independent governance structures and NSE listing following completion of the transaction.
Because Nedbank currently operates only a representative office in the region, the group has said no in-country operational integration will be required.
Settlement timeline
Nedbank said shareholders who accepted the offer will receive settlement of their consideration between the 10th and 14th trading day after the bank announces that all remaining conditions have either been fulfilled or waived.
If the outstanding approvals are received within the anticipated timelines, the transaction is expected to be concluded during the third quarter of 2026, creating one of the most significant banking partnerships on the African continent and strengthening Nedbank’s position in one of Africa’s fastest-growing economic regions.
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- Nedbank Group has moved a step closer to completing its planned acquisition of a majority stake in East African banking giant NCBA Group PLC after securing approval from the Central Bank of Kenya.
- This marks a key regulatory milestone in a transaction valued at approximately R13.9-billion.
- The South African financial services group announced in January 2026 its intention to acquire about 66% of NCBA, one of East Africa’s leading financial services groups, as part of its strategy to expand its presence across the continent.
- The proposed transaction will see NCBA become a subsidiary of Nedbank, while the remaining 34% stake will continue to trade on the Nairobi Securities Exchange (NSE).
- Under the terms of the deal, the purchase consideration will be settled through a combination of 20% cash and 80% newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
