Nedbank Group, one of South Africa’s largest banking groups, has completed its Ksh107.37 billion ($826.6 million) acquisition of a 66% controlling stake in Kenya’s lender NCBA Group, paying Ksh 23.23 billion ($178.86 million) in cash and issuing 43.63 million new shares to secure control of one of East Africa’s largest banking groups.

The banks confirmed the completion in separate announcements dated Nov. 4, following the transfer of 1.087 billion NCBA shares through a block trade on the Nairobi Securities Exchange on Nov. 3. The transaction makes NCBA a subsidiary of Nedbank.

Nedbank finalizes ownership transfer

Nedbank issued 43,631,052 new shares at an agreed settlement price of 250 rand ($15.19) apiece, alongside cash consideration of KSh23.23 billion. The combined payment, calculated using the exchange rate agreed under the offer, valued the acquisition at approximately Ksh107.37 billion ($826.6 million).

The transferred shares have been registered in Nedbank’s name at the Central Depository and Settlement Corporation, completing the change in ownership. Nedbank now controls 66% of NCBA, while existing shareholders retain the remaining 34%, with the Kenyan lender continuing to trade on the NSE.

Final reconciled results showed that NCBA shareholders tendered 1.316 billion shares, representing 79.88% of the bank’s issued share capital, marginally below the provisional 79.90% reported in July. Nedbank accepted all 920.43 million shares submitted under shareholders’ pro-rata entitlements.

The South African bank also allocated 166.94 million additional shares from excess applications totaling 395.6 million. The remaining 228.66 million excess shares were not accepted, leaving those shares with their existing owners.

NCBA board gets new directors

The acquisition has also brought changes to NCBA’s board, with Nedbank Group Chief Financial Officer Michael Howard Davis and Nedbank Corporate and Investment Banking Chief Executive Anél Bosman appointed as nonexecutive directors, effective Nov. 3.

NCBA also appointed Esther Wanjiku Kungu as group company secretary. She joined the lender’s insurance subsidiary in 2008 and has since progressed through the organization, reflecting continuity in the bank’s local management structure following the ownership change.

NCBA will retain its Nairobi headquarters, existing brand and local leadership, while gaining access to Nedbank’s capital base, corporate banking capabilities and wider regional and international networks. Nedbank expects to begin consolidating NCBA’s financial results into its group accounts from the fourth quarter of 2026.

$829 million NSE trading surge

The completion triggered an exceptional trading session on the Nairobi Securities Exchange. Equity turnover reached KSh107.70 billion ($829.1 million) on Nov. 3, compared with Ksh 420.40 million ($3.24 million) in the preceding session, with NCBA accounting for KSh107.3 billion ($825.8 million), or 99.6% of the total.

Foreign equity purchases surged to KSh107.4 billion ($826.85 million), against sales of Ksh 186.9 million ($1.44 million), producing net foreign buying of approximately KSh107.2 billion ($825.41 million). That was the highest daily net foreign buying figure in NSE records examined since 2008.

NCBA shares closed at KSh91.75 (71 cents), up 4.26% from their previous closing price of KSh88. The bank resumed normal trading on Nov. 3 following a suspension that began at the close of Oct. 21.

Nedbank expands East African reach

First announced in January 2026, the acquisition gives Nedbank control of a financial services group with a growing presence in East Africa. NCBA reported net profit of KSh12.4 billion ($95.36 million) for the first half of 2026, an increase of 12.2% from the corresponding period a year earlier.

The transaction followed approval from Kenya’s Capital Markets Authority and became unconditional on Oct. 15, clearing the way for settlement and the transfer of ownership. It also strengthens Nedbank’s position in a region where demand for corporate banking, digital payments and financing services continues to expand.

Nedbank, listed on the Johannesburg Stock Exchange, had a market capitalization of approximately R137 billion ($8.3 billion). The group serves more than 8 million clients through retail and wholesale banking operations, with established businesses across Southern Africa and an international presence.

Headquartered in Nairobi, NCBA was formed in 2019 through the merger of NIC Group and Commercial Bank of Africa. Its operations span Kenya, Uganda, Tanzania, Rwanda and Ivory Coast, with businesses covering corporate banking, retail finance, asset financing and digital financial services.