South African banking group Nedbank has completed its acquisition of a 66 per cent controlling stake in NCBA Group, triggering a multi-billion-shilling payout to the Kenyatta and Ndegwa families, the lender’s biggest shareholders.
The transaction became unconditional after NCBA shareholders accepted Nedbank’s offer for 1.087 billion ordinary shares, paving the way for the Johannesburg-listed lender to take control of the Kenyan bank following regulatory approvals in Kenya and South Africa.
The acquisition, valued at about Sh110 billion, gives Nedbank an established foothold in East Africa’s banking sector while positioning NCBA to draw on the larger group’s capital, expertise and regional connections to accelerate its expansion.
Under the terms of the offer, 80 per cent of the consideration is payable in newly issued Nedbank shares, while the remaining 20 per cent is in cash.
The structure allows shareholders who accepted the offer to retain exposure to the South African lender’s future performance.
NCBA shareholders tendered 1.316 billion shares, representing 79.9 per cent of the bank’s issued shares, by the close of the offer on July 10, 2026.
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However, excess applications were scaled back proportionately to align Nedbank’s eventual holding with its target of approximately 66 per cent.
Following the completion of the deal, NCBA will become a subsidiary of Nedbank but retain its name, Nairobi headquarters, local leadership and listing on the Nairobi Securities Exchange (NSE). Public investors will continue to hold the remaining 34 per cent stake.
NCBA shares will be suspended from trading on the NSE effective October 21 and are scheduled to resume trading on November 2, 2026, to allow for reconciliation of the bank’s share register.
NCBA Group managing director John Gachora said the acquisition will strengthen the lender’s ability to pursue opportunities across the region and broaden its product offering.
“NCBA has built a strong East African brand anchored on customer centricity and innovation. With the backing of Nedbank, we are now poised to boldly go after opportunities across the East African region, expand our footprint and bring to market a more sophisticated set of products,” he said.
Gachora added that the transaction would enhance the bank’s capabilities without disrupting its established identity.
“The name is the same, the people are the same, but the ambition and capabilities are tremendously magnified,” he said.
The acquisition gives Nedbank a strategic entry into East Africa through an established banking franchise, sparing the group the cost and time required to build a network from scratch in a region with rising demand for credit and financial services.
Nedbank Group chief executive Jason Quinn said the deal would connect two established banking platforms across Southern and East Africa, creating opportunities for clients and investors while supporting trade and investment.
“This landmark transaction establishes a significant presence for Nedbank in East Africa and marks a decisive step forward in our African growth strategy,” Quinn said.
“By connecting two strong banking platforms across Southern and East Africa, we are creating new opportunities for our clients and shareholders, while supporting greater trade, investment and growth across the continent. We are proud to welcome NCBA to the Nedbank Group,” he added.
The acquisition comes after a strong financial year for NCBA, which is Kenya’s fourth-largest bank by assets. The lender reported a net profit of Sh23.4 billion for the year ended December 2025, up seven per cent from Sh21.9 billion in 2024.
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