Nedbank plans 66% acquisition of NCBA Group

South Africa’s Nedbank Group Limited has announced its intention to acquire a controlling 66% stake in NCBA Group PLC, one of the region’s leading financial institutions, in a transformative move poised to reshape the East African banking sector.

The proposed transaction, unveiled on January 21, 2026, values NCBA at approximately 1.4 times its book value and is structured as a cash-and-share deal worth around 13.9 billion South African rand (roughly $856 million or Sh109.9 billion). If approved, NCBA will become a subsidiary of Nedbank while retaining its listing on the Nairobi Securities Exchange (NSE), with the remaining 34% of shares continuing to trade publicly.

Under the terms, participating NCBA shareholders will receive 20% of their payment in cash, with the remaining 80% settled through new Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE). The deal is subject to regulatory approvals from central banks in multiple jurisdictions, including Kenya and South Africa, and is expected to close within the next six to nine months, potentially by the third quarter of 2026.

For Nedbank, the acquisition marks a strategic leap into East Africa, where the South African lender currently maintains only a representative office. NCBA provides an established regional platform with operations in Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana.

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The group serves over 60 million customers, operates 122 branches, and disburses more than Ksh 1 trillion in digital loans annually. NCBA boasts strong financial metrics, including total assets of Ksh 665 billion and an average return on equity of around 19% since 2021.

Both parties have emphasized continuity, with the NCBA brand, local management team, and operational model set to remain anchored in Nairobi. Nedbank intends to nominate directors to NCBA’s board, while NCBA shareholders will gain representation on Nedbank’s board.

John Gachora, NCBA Group Managing Director and CEO, welcomed the partnership, highlighting its growth potential. “We are proud of the brand we have built and look forward to making it central to Nedbank’s East Africa expansion,” Gachora said. “Their strong balance sheet will help us scale in our current markets and explore the investment propositions that the DRC and Ethiopia have to offer.”

Jason Quinn, Nedbank CEO, described the deal as a milestone in the bank’s diversification strategy beyond its core Southern African market. “Kenya’s role as a regional financial hub, supported by strong institutions and a dynamic technology sector, makes it a natural anchor for our ambitions in Rwanda, Tanzania, and Uganda,” Quinn stated.

He added that the combination of NCBA’s local expertise in asset finance and digital banking with Nedbank’s global investment banking capabilities would create a powerful platform for sustainable growth.

The combined entity aims to tap into a vast market opportunity, serving a population of over 430 million across some of Africa’s fastest-growing economies, including potential expansions into Ethiopia and the Democratic Republic of Congo (DRC).