Nedbank moves to acquire 66 percent stake in NCBA Group
If completed, the transaction would see Nedbank acquire a controlling stake in NCBA, making it a subsidiary of the South Africa–based lender
KAMPALA, January 24, 2026 — NCBA Group PLC [NCBA] has announced that it has received a Strategic Investment Proposal and a Notice of Intention [NOI] from Nedbank Group Limited to acquire approximately 66 percent of its ordinary shares through a tender offer to existing shareholders.
If completed, the transaction would see Nedbank acquire a controlling stake in NCBA, making it a subsidiary of the South Africa–based lender. The remaining 34 percent of NCBA’s issued shares would continue to be listed on the Nairobi Securities Exchange [NSE].
The proposed acquisition values NCBA at 1.4 times its book value. Under the terms of the offer, participating shareholders would receive 20 percent of the consideration in cash, with the remaining 80 percent settled through the issuance of Nedbank ordinary shares listed on the Johannesburg Stock Exchange [JSE].
NCBA operates in Kenya, Uganda, Tanzania, Rwanda, Côte d’Ivoire, and Ghana, with a network of 122 branches serving more than 60 million customers.
Nedbank, headquartered in South Africa, has a primary listing on the JSE and a secondary listing on the Namibia Securities Exchange, and maintains an international presence including offices in London, Dubai, the Isle of Man, and Jersey.
The transaction aligns with Nedbank’s strategy to expand beyond Southern Africa into high-growth East African markets. Kenya’s status as a regional financial hub—supported by strong institutions, advanced capital markets, and a dynamic technology sector—positions it as a strategic base for this expansion.
NCBA’s strong market reputation, advanced digital banking capabilities, leadership in asset finance, investment banking expertise, and extensive regional footprint make it an attractive partner for Nedbank. Formed from the merger of NIC Group PLC and Commercial Bank of Africa Limited, NCBA holds Ksh 665 billion in assets, disburses more than Ksh 1 trillion in digital loans annually, and has maintained an average return on equity of 19 percent since the 2021 financial year.
Following the acquisition, NCBA is expected to serve as Nedbank’s primary investment platform for East Africa while remaining listed on the NSE. The bank’s brand, governance structures, management team, and operational model will remain locally anchored. As Nedbank currently maintains only a representative office in East Africa, the transaction will not require significant operational integration.
The partnership is expected to generate substantial synergies. Nedbank will strengthen NCBA’s corporate and investment banking capabilities through its global network and cross-border expertise, while NCBA will benefit from access to a larger capital base to support growth across Kenya and the wider region. Employees are expected to gain expanded career opportunities, and customers will benefit from increased lending capacity and enhanced service offerings.
Nedbank has indicated that it intends to preserve NCBA’s brand identity, governance framework, operational approach, and management team.
Commenting on the development, NCBA Group Managing Director John Gachora said Nedbank was an ideal partner for the bank’s regional growth ambitions.
“Nedbank holds between 16 and 17 percent market share in loans and deposits in South Africa and leads in vehicle and commercial property finance. Its strong balance sheet and top-tier ESG ratings will help us scale our operations and explore opportunities in markets such as the DRC and Ethiopia,” Gachora said.
Nedbank Chief Executive Jason Quinn said the deal aligns with the group’s long-term growth strategy.
“East Africa is a key region for our expansion beyond Southern Africa, and partnering with a strong institution like NCBA positions us well to achieve these ambitions,” Quinn said.
He added that Kenya’s role as a regional financial hub and East Africa’s stable macroeconomic environment, youthful population, and growing business community make the region highly attractive for long-term investment.
The transaction is subject to regulatory approvals from central banks and relevant authorities across the affected jurisdictions and is expected to close within six to nine months.
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