NCBA Group PLC (NCBA), one of East Africa’s leading financial services providers, has confirmed receipt of a strategic investment proposal from South Africa’s Nedbank Group Limited (Nedbank) to acquire approximately 66 per cent of its ordinary shares via a tender offer. If completed, the transaction will give Nedbank a controlling stake in NCBA, with the remaining 34 per cent of shares continuing to trade on the Nairobi Securities Exchange (NSE).
The proposed acquisition values NCBA at 1.4 times its book value. Shareholders participating in the tender offer will receive 20 per cent of the consideration in cash, with the remaining 80 per cent in Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
NCBA, formed through the merger of NIC Group PLC and Commercial Bank of Africa Limited, operates 122 branches across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast and Ghana, serving over 60 million customers. The Group manages assets worth KES 665 billion and disburses over KES 1 trillion in digital loans annually, achieving an average return on equity of 19 per cent since the 2021 financial year.
Nedbank, headquartered in South Africa with a primary JSE listing and a secondary listing in Namibia, is one of the continent’s largest banks, with a presence across Southern Africa and internationally in London, Dubai, Jersey and the Isle of Man. The deal aligns with Nedbank’s strategic objective to expand beyond Southern Africa into high-growth East African markets, anchored by Kenya’s strong financial institutions, sophisticated capital markets, and vibrant technology sector.
Strategic Synergies
According to NCBA Group Managing Director John Gachora, Nedbank’s balance sheet strength, expertise in vehicle and commercial property finance, and top-tier ESG ratings make it an ideal partner for NCBA’s regional growth. “We are proud of the brand we have built and look forward to making it central to Nedbank’s East Africa expansion,” Mr Gachora said.
Nedbank Chief Executive Jason Quinn emphasised that Kenya’s role as a regional financial hub, along with stable macroeconomic fundamentals and a growing, urbanising population, makes East Africa a natural focus for the bank’s expansion strategy. The partnership is expected to strengthen NCBA’s corporate and investment banking capabilities, support scaling of operations, and provide staff access to training and career opportunities across multiple geographies.
Nedbank has stated its intention to retain NCBA’s brand, governance structures, operational model, and management team, while NCBA will serve as the cornerstone of its East African strategy. With a combined population exceeding 190 million across NCBA’s current markets, and potential growth opportunities in Ethiopia (136 million people) and DRC (110 million people), the transaction could cement Kenya’s role as a gateway into the broader East African market.
The acquisition remains subject to regulatory approvals from central banks in the relevant jurisdictions and is expected to close within six to nine months.