JOHANNESBURG, Jan 22 – South Africa’s Nedbank Group has offered to acquire a 66% stake in Kenya’s NCBA Group in a transaction valued at 13.9 billion rand ($855.5 million), as part of its strategy to deepen its presence in East Africa.
Under the proposed deal, Nedbank will settle 20% of the purchase consideration in cash, with the remaining 80% paid through newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange. The valuation is based on a Nedbank share price of 250 rand.
The remaining 34% of NCBA shares would continue to trade on the Nairobi Securities Exchange, maintaining the Kenyan lender’s public listing. If the transaction is completed, NCBA would become a subsidiary of Nedbank while retaining its brand identity, local management team, and separate stock exchange listing.
Nedbank Chief Executive Officer Jason Quinn said the acquisition represents a significant step in the group’s expansion strategy across southern and East Africa.
“By combining NCBA’s strong local franchise with Nedbank’s capital strength and regional expertise, we see a compelling platform for long term growth across the region,” Quinn said.
Nedbank views East Africa as a strategic growth corridor, citing favourable demographics, improving macroeconomic fundamentals, and the region’s role as a key trade link between Africa, the Middle East, India, and Asia.
NCBA Group, headquartered in Nairobi, was formed in 2019 following the merger of NIC Group and Commercial Bank of Africa. The lender operates across Kenya, Uganda, Tanzania, and Rwanda, while also offering digital banking services in Ghana and Ivory Coast. It serves more than 60 million customers and operates a network of 122 branches across the region.
The proposed acquisition remains subject to regulatory approvals in South Africa, Kenya, and other relevant jurisdictions.
