South Africa’s Nedbank Group has moved to acquire a controlling stake in NCBA Group, signaling a renewed push by one of the continent’s largest lenders to expand into fast-growing East African markets.
Reports said the Kenya-based NCBA Group has received a Strategic Investment Proposal and a formal Notice of Intention from Nedbank to acquire about 66% of its ordinary shares.
If completed, the transaction, worth $856 million, would make NCBA a subsidiary of Nedbank, while leaving roughly 34% of the bank listed on the Nairobi Securities Exchange, thus preserving its local market presence.
One of South Africa’s “Big Four” financial institutions, Nedbank Group is a diversified giant with a heritage dating back to 1888.
Headquartered in Sandton and listed on the Johannesburg Stock Exchange, the bank serves approximately 7.6 million customersthrough its extensive retail, corporate, and investment banking clusters.
The NCBA transaction comes as African banks face mounting pressure to consolidate, driven by higher regulatory capital requirements, rising technology and compliance costs, and the need to support increasingly regional corporate clients.
For Nedbank, the acquisition represents a strategic entry into East Africa after years of signaling its intention to expand beyond its core Southern African market.
In recent years, East Africa has become a focal point for pan-African lenders and international financial institutions, supported by relatively resilient economic growth, rapid digital adoption and deepening regional integration.
By acquiring NCBA, Nedbank would gain immediate scale and market access in a region where organic expansion would take years. Nedbank currently operates only a representative office in East Africa.
On the other hand, the NCBA Group has operations in Kenya, Uganda, Tanzania, Rwanda, Côte d’Ivoire and Ghana, supported by a network of 122 branches and a large digital banking platform serving more than 60 million customers.
Nedbank chief executive Jason Quinn said East Africa had been deliberately identified as a growth frontier, citing Kenya’s strong institutions, sophisticated markets and dynamic technology sector.
The transaction is subject to regulatory approvals from central banks, capital markets authorities and competition regulators across NCBA’s operating jurisdictions.
The parties expect the process to take between 6-9 months.
If completed, the deal would rank among the most significant cross-border banking transactions in East Africa in recent years and underline the renewed interest of South African lenders in the region’s long-term growth prospects.
John Gachora, NCBA’s Group CEO, said the bank was keen to become the cornerstone of Nedbank’s East African strategy. He added that NCBA would remain listed on the NSE, with its brand, governance framework and management team retained locally.
Analysts say the deal, if completed, would strengthen NCBA’s ability to support larger corporate transactions and cross-border activity by giving it access to a deeper capital base and global client relationships.
In turn, Nedbank would gain exposure to markets with faster population growth and higher long-term banking penetration than South Africa.
