South Africa’s Nedbank Group has moved to expand into East Africa, submitting a proposal to acquire a controlling stake in Kenya’s NCBA Group in a transaction valued at roughly $800 million.
NCBA said it had received a Strategic Investment Proposal and a Notice of Intention from Nedbank to acquire about 66 per cent of its ordinary shares through a tender offer to existing shareholders. If completed, Nedbank would gain control of NCBA, while the remaining 34 per cent of shares would continue trading on the Nairobi Securities Exchange.
The proposed transaction values NCBA at 1.4 times its book value. Shareholders participating in the tender offer would receive 20 per cent of the consideration in cash, with the remaining 80 per cent settled through newly issued Nedbank shares listed on the Johannesburg Stock Exchange.
NCBA operates across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast and Ghana, serving more than 60 million customers through a network of 122 branches. Formed from the merger of NIC Group and Commercial Bank of Africa, NCBA has built a strong franchise in digital lending, asset finance, and investment banking. The group holds assets of about KES 665 billion and disburses over KES 1 trillion in digital loans annually, with an average return on equity of around 19 per cent since 2021.
For Nedbank, the deal is part of a broader strategy to expand beyond its Southern African base into faster-growing markets. The Johannesburg-listed lender has operations in London, Dubai and several offshore financial centres, but only maintains a representative office in East Africa.
Kenya’s position as a regional financial hub, underpinned by advanced capital markets and a dynamic technology sector, makes it a natural anchor for Nedbank’s East African ambitions. NCBA is expected to become the cornerstone of Nedbank’s regional strategy while remaining operationally independent, locally managed, and listed on the NSE.
Under the proposed structure, NCBA’s brand, governance framework, management team, and operational model would be preserved, with no immediate need for integration of systems. The combined banks are expected to benefit from synergies, including enhanced corporate and investment banking capabilities, increased lending capacity, and opportunities for staff training and career development across multiple geographies.
John Gachora, NCBA Group Managing Director, described Nedbank as “an ideal partner” for the bank’s growth in East Africa, citing its strong market share in South Africa and top-tier ESG ratings. He said the partnership would also provide opportunities to expand into Ethiopia and the Democratic Republic of Congo.
Jason Quinn, Nedbank’s Chief Executive, said East Africa represented a key growth region due to its stable macroeconomic environment, youthful and urbanizing population, and vibrant business community. “Kenya’s role as a financial hub makes it a natural gateway for our regional expansion,” he added.
The transaction remains subject to regulatory approvals from central banks and other relevant authorities and is expected to close within six to nine months.
