Nedbank moves closer to acquiring Kenya’s NCBA  

Nedbank’s plan to buy a controlling stake in Kenya’s NCBA has cleared a key regulatory hurdle, bringing the cross-border deal closer to completion. 

The South African lender said Monday that Kenya’s Capital Markets Authority granted it an exemption from making a mandatory offer for all of NCBA’s shares under local takeover rules. The waiver was one of the conditions attached to the transaction. 

Nedbank in January offered about R13.9 billion ($869.9 million) for a 66% stake in the Nairobi-based bank. The sum is equal to more than 80% of Nedbank’s 2024 profit and just over 10% of its market value on the Johannesburg Stock Exchange. 

The bank has secured irrevocable undertakings from shareholders representing roughly 77.54% of NCBA’s shares, committing to accept the offer. 

In September Standard Bank had also shown interest in NCBA. Under Nedbank’s proposal, NCBA will remain listed on the Nairobi Securities Exchange, with 34% of its shares in public hands.

Nedbank bets on NCBA expansion

For Nedbank, South Africa’s fourth-largest lender, the acquisition marks a renewed push into East Africa. About 80% of its earnings still come from its home market.

Executives have said the group wants to deepen its presence in faster-growing regional economies after exiting a West African investment that proved costly. 

NCBA, headquartered in Nairobi, was formed in 2019 through the merger of NIC Bank and Commercial Bank of Africa. Its shareholders include members of Kenya’s Kenyatta family and the family of former Central Bank of Kenya governor Philip Ndegwa.

The lender serves about 60 million customers and operates more than 100 branches in Kenya, alongside businesses in Tanzania, Uganda, Rwanda and Côte d’Ivoire. It also has digital operations in Ghana. 

John Gachora, NCBA’s managing director, said the tie-up would strengthen the bank’s ability to serve as a bridge between Kenya and the wider region. 

“Nedbank’s strong balance sheet will help us scale in our current markets and consider opportunities in countries such as the Democratic Republic of Congo and Ethiopia,” he said.

Quinn expands Nedbank into Kenya

Group Chief Executive Jason Quinn has described the offer as an important step in expanding Nedbank’s footprint across Southern and East Africa.

Quinn, appointed in May 2024, previously served as finance director and interim chief executive at Absa Group. Before that, he was a partner at Ernst & Young. 

Nedbank serves nearly 8 million clients across wholesale and retail banking, insurance, asset and wealth management.

The proposed transaction would give it a larger platform in one of Africa’s most competitive banking markets, while allowing NCBA to retain its local identity and listing. 

The deal now hinges on remaining regulatory approvals and the formal acceptance of the offer by shareholders.