The Kenyan banking landscape has been rocked by the announcement that South African financial giant Nedbank Group has officially launched a bid to acquire a controlling 66% stake in NCBA Group.
Valued at approximately Sh109.5 billion ($856 million), the deal marks one of the largest cross-border banking acquisitions in East African history. If approved, the merger will transform NCBA—a bank deeply rooted in Kenya’s political and economic history—into a subsidiary of the Johannesburg-based lender.
The Deal Structure: Cash, Stocks, and Sh110 Billion
Nedbank’s offer is not a standard cash buyout. It is a sophisticated “cash-and-stock” tender offer designed to integrate NCBA shareholders into Nedbank’s global portfolio.
The Valuation: The deal values NCBA at a significant premium, roughly 1.4 times its book value.
The Payment: Shareholders will receive 20% in cash and the remaining 80% in newly issued Nedbank ordinary shares listed on the Johannesburg Stock Exchange (JSE).
The Residual Stake: While Nedbank will take the 66% majority, the remaining 34% will continue to trade publicly on the Nairobi Securities Exchange (NSE).
Why Now? Nedbank’s East African Ambition
For years, South African banks have eyed the lucrative East African market. Following Nedbank’s recent exit from Ecobank Transnational, the group has been looking for a “bridgehead” into the region.
NCBA, with its massive digital footprint (serving over 60 million customers via M-Shwari and Fuliza) and its dominance in asset finance, provides the perfect platform. Nedbank CEO Jason Quinn noted that Kenya’s role as a trade corridor linking Africa with Asia and the Middle East makes this a “region of significant strategic importance.”
What Happens to the Kenyatta and Ndegwa Families?
NCBA was formed in 2019 through the merger of NIC (linked to the Philip Ndegwa family) and CBA (associated with the family of former President Uhuru Kenyatta).
This acquisition represents a massive windfall for these “founding families.” By swapping their NCBA shares for Nedbank stock, they effectively move their wealth into a more geographically diversified, dollar-hedged asset listed on a major global exchange (JSE).
Will the NCBA Brand Change?
Current NCBA Managing Director John Gachora has moved to reassure customers and staff. Under the current agreement:
Brand Identity: The NCBA name, colors, and branding will remain unchanged.
Leadership: No immediate changes to management or staff are expected.
Operations: There will be no operational overlaps since Nedbank only currently operates a representative office in Kenya.
Market Reaction: NSE Stocks Rally
Investors reacted with immediate enthusiasm. Following the news on Wednesday, January 21, 2026, NCBA shares on the Nairobi Securities Exchange surged by 8%, as shareholders anticipated the “buyout premium.”
Key Takeaways for Customers
Safety: The backing of a massive South African parent company provides NCBA with a much larger balance sheet.
Digital Banking: Expect more innovation in M-Shwari and the Loop app as Nedbank pours capital into NCBA’s tech stack.
Regional Expansion: NCBA is now expected to use this capital to push aggressively into Ethiopia and the DRC.
