South Africa’s banking giant advances East Africa bet with $856m NCBA deal

Nedbank, one of South Africa’s biggest banking groups, has agreed to acquire a 66 percent stake in Kenya’s NCBA Group in a deal valued at 13.9 billion rand ($855.5 million), signalling a renewed push by regional lenders into faster-growing East African markets.

Under the proposed transaction, Nedbank will pay 20 percent of the consideration in cash, with the remaining 80 percent settled through newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange, the group said on Wednesday. The valuation is based on a Nedbank share price of 250 rand.

The group operates a representative office in Kenya. If the deal is completed, the lender would gain a substantial foothold in East Africa through NCBA’s network of 122 branches across Kenya, Uganda, Tanzania and Rwanda, alongside digital and cross-border services in Ghana and Côte d’Ivoire. NCBA serves more than 60 million customers across its markets.

The remaining 34 percent of NCBA’s shares will continue to trade on the Nairobi Securities Exchange, preserving the Kenyan lender’s public listing and local shareholder base. Upon completion, NCBA would become a subsidiary of Nedbank while retaining its brand identity, local management team and separate stock exchange listing.

The transaction remains subject to regulatory approvals in South Africa, Kenya and other relevant jurisdictions.

The proposed acquisition also reflects a broader shift within South Africa’s banking sector, as large lenders look beyond a saturated domestic market characterised by weak credit growth, rising regulatory costs and intensifying competition. While several global banks have scaled back or exited African operations in recent years, Nedbank’s move signals confidence in selective regional expansion.

Jason Quinn, Nedbank’s chief executive, said the transaction represents a significant milestone in the group’s expansion across southern and East Africa. “By combining NCBA’s strong local franchise with Nedbank’s capital strength and regional expertise, we see a compelling platform for long-term growth across the region,” Quinn said.

Nedbank views East Africa as a strategic growth corridor, citing favourable demographics, improving macroeconomic fundamentals and the region’s role as a key trade and investment link connecting Africa with the Middle East and Asia.