$855 Million Deal: South Africa’s Nedbank Sets Sights on Controlling Stake in Kenya’s NCBA Group to Expand Across East Africa

South Africa’s Nedbank Group has made a formal offer to acquire a controlling 66 percent stake in Kenya’s NCBA Group. The cash-and-stock deal is valued at about $855.5 million, or roughly KSh110 billion. The move signals a major push by the lender to expand across East Africa.

Under the offer, 20 percent of the payment will be in cash. The remaining 80 percent will be paid through new Nedbank ordinary shares listed on the Johannesburg Stock Exchange. The remaining 34 percent of NCBA shares will continue trading on the Nairobi Securities Exchange.

If completed, NCBA will become a subsidiary of Nedbank. The bank will keep its brand, local management team, and separate stock market listing. Nedbank aims to combine NCBA’s strong local market position with its capital, expertise, and long-term commitment to Africa.

Nedbank CEO Jason Quinn called the acquisition a milestone in the bank’s strategy to grow across southern and East Africa. He said the deal will create a strong platform for sustainable regional growth. “Combining NCBA’s local presence with Nedbank’s resources will strengthen our ability to serve the region,” Quinn added.

Nedbank says East Africa is a key strategic region. It has strong economic fundamentals and a large, growing population. It also serves as a trade corridor linking Africa with the Middle East, India, and Asia.

NCBA, headquartered in Nairobi, was formed in 2019 after the merger of NIC Group and Commercial Bank of Africa. The bank operates in Kenya, Uganda, Tanzania, and Rwanda. It also offers digital banking services in Ghana and Ivory Coast. NCBA serves over 60 million customers and has 122 branches across the region.

Analysts say the acquisition could boost cross-border trade and digital financial services. The move highlights growing investor interest in East Africa’s banking sector. Pending regulatory approval, the deal is expected to reshape the region’s banking landscape. It will strengthen Nedbank’s footprint in one of Africa’s most dynamic markets.