Nedbank Wins Regulatory Approval To Take Majority Stake In Kenya’s NCBA
Nedbank is one step closer to acquiring 66% of Kenya’s NCBA, expanding East African footprint and fueling continental growth strategy.
African banking giant Nedbank continues to pursue a calculated growth strategy on the continent, receiving regulatory approval to acquire a 66% controlling stake in NCBA for $855.5 million.
The deal, while subject to the remaining conditions of the waiver and NCBA shareholder approval, would be one of the largest cross-border banking transactions in Africa’s recent history.
Driving the purchase is Nedbank’s realization that its South African home market is stagnating while other markets are hitting saturation mode, largely due to stiff competition. For this reason, the bank is taking bold steps to sustain growth and has identified the East Africa region as the next frontier.
Nedbank said in a statement that the strategic acquisition brings it “complementary strengths” to fuel its growth in East Africa, a region underpinned by expanding economies, a large and growing population, strong macroeconomic fundamentals, and the fact that there is primary trade corridor linking Africa with the Middle East, Asia, and Europe.
One of the leading lenders in Kenya, the bank would bring more than 60 million customers, $5.4 billion in assets, and leadership in asset finance, digital banking, and innovation to Nedbank. NCBA also has a presence in Rwanda, Tanzania, and Uganda, and offers digital banking services in Ghana and the Ivory Coast. This would expand Nedbank beyond its presence in Eswatini, Lesotho, Mozambique, Namibia, South Africa, and Zimbabwe
By combining the two banks, Nedbank is building a “compelling platform for sustainable growth in the region,” said Jason Quinn, Nedbank Group CEO. The transaction is pending regulatory approval and is expected to close later in the year.
NCBA saw its profits surge by 8.5% to $127 million for the nine-month period ending September 2025. It has also delivered an average return on equity of approximately 19% since 2021. Nedbank has made it clear that the acquisition, which will see NCBA remain independently governed and retain its brand identity, is not an end in itself. Rather, it serves as a springboard for further expansions to high-potential markets like Ethiopia and the Democratic Republic of Congo.