South African lender Nedbank Group has received regulatory approval from the Central Bank of Kenya to acquire up to a 66 per cent stake in Nairobi Securities Exchange-listed NCBA Group, according to an official regulatory announcement on August 28. The transaction represents a major ownership shift for the East African financial institution and expands Nedbank’s regional footprint.
Central Bank Approval and Transaction Terms
According to a statement issued by the Central Bank of Kenya (CBK), the proposed acquisition was approved under Section 13(4) of the Banking Act. The transaction will take effect upon completion in accordance with the terms of the agreement between the two parties, as stated by the CBK. Under the deal structure, Nedbank will acquire 1,087,362,891 NCBA shares, representing 66 per cent of the lender’s issued share capital. The remaining 34 per cent, comprising 560,156,641 shares, will remain held by other shareholders. Shareholders whose shares are accepted into the offer will receive cash payments on the settlement date, with the shares transferred to Nedbank through a block trade.
Corporate Footprint of NCBA Group
NCBA Group was formed in 2019 following the merger of NIC Group and Commercial Bank of Africa (CBA), establishing one of the region’s prominent financial services conglomerates. The Nairobi Securities Exchange-listed group maintains banking operations across Kenya, Uganda, Tanzania, and Rwanda, alongside a joint venture in Côte d’Ivoire. Beyond traditional commercial banking, NCBA operates subsidiaries and business interests in stockbroking, insurance, investment banking, and leasing.
Nedbank’s Regional Strategy
For Nedbank Group, one of South Africa’s largest financial services providers, the transaction deepens its presence in East Africa. Listed on the Johannesburg Stock Exchange and the Namibia Securities Exchange, Nedbank currently operates across Southern Africa through subsidiaries and banking operations in Lesotho, Mozambique, Namibia, Eswatini, and Zimbabwe. The CBK stated that it welcomed the transaction, noting that the acquisition will support the stability and resilience of Kenya’s banking sector while promoting market competition.
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