NCBA Group PLC, one of East Africa’s leading financial services providers, has announced that it has received a Strategic Investment Proposal and a Notice of Intention from South Africa’s Nedbank Group Limited to acquire approximately 66 per cent of its ordinary shares through a Tender Offer.
If the offer is successfully completed, Nedbank will acquire a controlling interest in NCBA, turning the Kenyan lender into a subsidiary of the South African banking giant.
The remaining 34 per cent of NCBA shares will continue to be listed on the Nairobi Securities Exchange (NSE), ensuring the bank maintains a local market presence.
The proposed transaction values NCBA at 1.4 times its book value. NCBA shareholders who participate in the Tender Offer will receive 20 per cent of their consideration in cash, while the remaining 80 per cent will be settled through Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
NCBA, formed from the merger of NIC Group PLC and Commercial Bank of Africa Limited, currently operates 122 branches across Kenya, Uganda, Tanzania, Rwanda, Ivory Coast, and Ghana, serving over 60 million customers.
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The bank holds assets worth KSh665 billion, disburses over KSh1 trillion in digital loans annually, and has maintained an average return on equity of about 19 per cent since 2021.
Nedbank, headquartered in South Africa with a primary listing on the JSE and a secondary listing on the Namibia Securities Exchange, is among Africa’s largest financial institutions.
It operates across Southern Africa and internationally, including offices in London, Dubai, the Isle of Man, and Jersey. The acquisition aligns with Nedbank’s strategy to expand beyond Southern Africa into high-growth East African markets.
NCBA Group Managing Director John Gachora said Nedbank is an ideal partner for the bank’s regional growth ambitions.
“Their strong balance sheet and market leadership in loans, deposits, and property finance will allow us to scale our operations in existing markets and explore investment opportunities in the Democratic Republic of Congo and Ethiopia.
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We are proud of the brand we have built and look forward to making it central to Nedbank’s East Africa expansion,” he said.
Nedbank Chief Executive Jason Quinn said the acquisition reflects the group’s strategic goal to diversify beyond Southern Africa.
“Kenya’s position as a regional financial hub, supported by strong institutions, sophisticated capital markets, and a dynamic technology ecosystem, makes it a natural anchor for our East Africa ambitions, including Rwanda, Tanzania, and Uganda. The region’s stable operating environment, growing urban population, and vibrant business community make East Africa highly attractive for growth,” he added.
The proposed partnership will leverage NCBA’s strong digital banking platforms, regional network, and investment banking expertise, while providing access to Nedbank’s global capabilities, capital resources, and cross-border collaboration experience.
Staff will gain career development opportunities across multiple geographies, while customers benefit from increased lending capacity and deeper financial services offerings.
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Both banks confirmed that NCBA’s brand, governance structure, operational model, and management team will remain intact.
The transaction, which is subject to regulatory approvals from relevant central banks, is expected to close within six to nine months.