South Africa’s Nedbank Group has completed its acquisition of a 66% controlling stake in Kenya-based NCBA Group, establishing a significant banking presence in East Africa and expanding its footprint beyond Southern Africa.
In an announcement on 19 October 2026, NCBA confirmed that the transaction had completed following receipt of the required regulatory approvals, making the Nairobi-headquartered financial services group a subsidiary of Nedbank. NCBA will retain its brand, local leadership, headquarters and listing on the Nairobi Securities Exchange (NSE), with the remaining 34% of its issued shares held by public investors.
Transaction structure
Nedbank announced the proposed acquisition in January 2026, with a purchase consideration of approximately R13.9 billion, equivalent to US$855.5 million at the time. The consideration comprises 20% cash and 80% newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
The offer closed on 10 July 2026, with NCBA shareholders tendering 1.316 billion shares, representing 79.90% of the company's issued share capital. As acceptances exceeded Nedbank's target, excess applications were scaled back on a pro-rata basis to bring the intended acquisition to approximately 66%, equivalent to 1.087 billion shares.
The offer became unconditional on 15 October 2026. NCBA's announcement of 19 October described the transaction as completed, while Nedbank's subsequent implementation timetable provides for the transfer of shares through a block trade on the NSE and settlement of consideration from 3 November 2026.
Strategic expansion into East Africa
The acquisition advances Nedbank's strategy to diversify its African operations by establishing a controlling position in an existing East African banking platform.
Before the transaction, Nedbank's physical banking operations were concentrated in Southern Africa, alongside international offices and a representative office in Kenya. The acquisition gives the group access to NCBA's established banking operations, regional network and digital financial services capabilities.
NCBA operates across Kenya, Uganda, Tanzania and Rwanda, with digital banking services in Ghana and Côte d'Ivoire. The group serves more than 60 million customers through a network of 122 branches, with established businesses in corporate banking, asset finance, digital lending and investment banking.
The combination connects Nedbank's corporate and investment banking capabilities and balance sheet with NCBA's regional customer base and distribution network. The two groups have identified opportunities to support cross-border trade, investment and enterprise growth across Southern and East Africa.
NCBA Group Managing Director and Chief Executive John Gachora said the transaction would expand the group's regional ambitions and capabilities while preserving its existing brand and people.
Nedbank Group Chief Executive Jason Quinn described the acquisition as a significant step in the group's African growth strategy, creating opportunities for clients and shareholders through the connection of two banking platforms across Southern and East Africa.
Transaction advisers
Nedbank's disclosed advisers include:
Nedbank Corporate and Investment Banking: Exclusive investment bank, corporate adviser and transaction sponsor.
Cliffe Dekker Hofmeyr Inc.: Legal adviser.
Dyer and Blair Investment Bank: Kenyan investment bank and stockbroker.
Old Mutual Investment Services (Namibia) (Pty) Ltd: Sponsor to Nedbank in Namibia.
Custody & Registrars Services Limited: Share registrar and processing agent.
The acquisition makes NCBA a subsidiary of Nedbank while preserving its separate listing on the NSE. Nedbank expects NCBA's financial results to be consolidated into its group financial statements in the fourth quarter of 2026.
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