NAIROBI, Kenya, Aug 31 – South African lender Nedbank Group Limited has secured regulatory approval to acquire up to 66 percent of the issued share capital of NCBA Group Plc, paving the way for a major change in the ownership structure of one of East Africa’s largest banking groups.
The Central Bank of Kenya (CBK) said it approved the proposed acquisition on August 28 under Section 13(4) of the Banking Act.
The transaction will take effect once the parties complete the deal in accordance with the terms of their agreement.
The acquisition will give Nedbank a controlling stake in NCBA, strengthening the South African lender’s presence in East Africa while bringing one of the region’s established banking groups under the ownership of a larger continental financial institution.
“CBK welcomes this transaction as it will ensure continued stability and enhance the resilience of the Kenyan banking sector.”
“It will also promote competition,” the regulator said.
NCBA was created in 2019 through the merger of NIC Group and Commercial Bank of Africa (CBA), and is listed on the Nairobi Securities Exchange.
The Nairobi-based group has expanded beyond Kenya and operates banking subsidiaries in Uganda, Tanzania and Rwanda, as well as a joint venture in Côte d’Ivoire.
It has also diversified into stockbroking, insurance, investment banking and leasing, giving Nedbank access to a broader range of financial services across the region.
Nedbank, which is listed on the Johannesburg Stock Exchange and the Namibia Securities Exchange, is a diversified financial services group with operations in several Southern African markets.
Its subsidiaries and banking operations span Lesotho, Mozambique, Namibia, Eswatini and Zimbabwe, among others.
The proposed acquisition marks a further push by major South African financial institutions into African markets as lenders seek scale, geographic diversification and stronger regional networks.
For NCBA, the transaction could provide access to Nedbank’s capital, expertise and wider African network, while the South African group stands to deepen its footprint in East Africa through NCBA’s established operations.
However, the transaction will also result in a significant shift in NCBA’s ownership, with the final acquisition subject to completion of the agreement between the two parties.
CBK did not disclose the value of the proposed transaction or the timeline for completion in its announcement.
The regulator said its approval was granted after considering the transaction under the requirements of the Banking Act.
