South Africa’s Nedbank Group has made a bid of about 13.9 billion rand (US$855 million) to acquire a controlling stake of roughly 66 percent in Kenya’s NCBA Group, stepping up its expansion into East Africa and marking one of the region’s largest proposed cross-border banking deals in recent years.
Nedbank said on Wednesday it had submitted the offer as part of a strategy to deepen its presence in fast-growing African markets, following a recent retreat from parts of West and Central Africa. If completed, the transaction would give Nedbank exposure to more than 60 million customers across four East African countries through NCBA’s regional footprint.
Under the proposed terms, the acquisition would be settled through a combination of cash and shares, with 20% of the consideration paid in cash and the remaining 80 percent in newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange. Nedbank did not disclose a timeline for completion, saying the deal remains subject to regulatory approvals and customary conditions.
Following the transaction, NCBA Group would become a subsidiary of Nedbank, while the remaining 34 percent of its share capital would continue to trade publicly on the Nairobi Securities Exchange. Nedbank said NCBA would retain its brand, governance structures and local management team, and would continue to operate independently in Kenya.
The South African lender added that it did not plan to pursue operational integration in Kenya, where it currently maintains only a representative office. Instead, the group said it viewed the partnership as a platform for long-term growth built around NCBA’s established regional presence and Nedbank’s balance sheet strength and technical expertise.
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“By combining NCBA’s strong local presence with Nedbank’s financial strength, expertise and long-term commitment to Africa, we see the emergence of an attractive platform for sustainable growth in the region,” Nedbank chief executive Jason Quinn said in a statement.
The proposed acquisition follows Nedbank’s decision in August 2025 to sell its 21.22 percent stake in pan-African banking group Ecobank. At the time, the lender said the divestment would allow it to redeploy capital and management focus toward priority markets in Southern and East Africa, where it sees stronger strategic alignment and growth potential.
Nedbank currently operates banking subsidiaries in five Southern African countries Namibia, Eswatini, Mozambique, Lesotho and Zimbabwe alongside its South African home market. The group has repeatedly described East Africa as a region of “major strategic importance”, pointing to favourable demographic trends, improving macroeconomic stability and its role as a trade and logistics corridor linking Africa with the Middle East, India and Asia.
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Kenya is widely regarded as East Africa’s financial hub, hosting a competitive banking sector that has benefited from rapid digitalisation and rising cross-border trade within the East African Community. Analysts say the proposed deal would give Nedbank an immediate scale presence in the region, avoiding the higher costs and longer timelines associated with building a greenfield operation.
NCBA Group is Kenya’s third-largest banking group by number of customers and by branch network, serving more than 60 million clients through 122 outlets. The group was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa, a consolidation that created one of the country’s largest lenders by assets and customers.
Beyond Kenya, NCBA operates banking subsidiaries in Uganda, Tanzania and Rwanda, and offers digital banking services in Ghana and Côte d’Ivoire. The group has positioned itself as a regional player with a strong focus on retail, corporate and digital banking, areas that align with Nedbank’s stated growth priorities.
Neither Nedbank nor NCBA disclosed whether discussions with Kenyan authorities had begun, though regulatory approval from multiple jurisdictions would be required for the transaction to proceed. Market participants said scrutiny is likely to focus on ownership structure, capital adequacy and the impact on competition in Kenya’s banking sector.
If approved, the deal would underscore growing interest by southern African banks in East Africa’s expanding financial markets, as lenders seek new growth avenues amid slower economic expansion at home.
