Nedbank gets approval for R13.9 billion acquisition
The Central Bank of Kenya has officially approved Nedbank Group’s proposed acquisition of a controlling stake in major Kenyan bank NCBA.
“Nedbank has received the necessary regulatory approvals from the two key regulators in South Africa and Kenya for its proposed acquisition of a 66% stake in NCBA Group,” Nedbank told BusinessTech.
This approval removes another obstacle in the South African bank’s expansion into East Africa and brings Nedbank closer to finalising the R13.9 billion transaction.
This deal represents a significant investment in the region’s growth prospects, as Nedbank aims to reduce its reliance on its domestic market.
Nedbank announced that it had secured most of the regulatory approvals needed for the transaction.
The remaining approvals are expected by the end of the third quarter, after which the bank will be able to proceed toward settlement, provided that all outstanding conditions are met or waived.
Nedbank offered to buy these shares directly from NCBA’s current shareholders. By 21 July 2026, the group confirmed that enough shareholders had accepted the offer to reach its 66% target.
“The transaction remains subject to a limited number of additional regulatory approvals, which are expected to be received by the end of the third quarter of 2026,” said Nedbank.
The group said the transaction will be concluded only once all outstanding conditions have been met.
“The Central Bank of Kenya welcomed the transaction, saying it would ensure continued stability, enhance the resilience of the Kenyan banking sector and promote competition,” Nedbank said in a statement.
The bank has already secured commitments from NCBA shareholders holding about 77.54% of the Kenyan lender.
The transaction provides Nedbank with exposure to NCBA’s operations in Kenya, Tanzania, Uganda, and Rwanda, as well as its digital operations in Ghana and the Ivory Coast.
With Kenya being the largest economy in the region, it is expected to serve as the focal point for Nedbank’s broader expansion into East Africa.
This deal comes at a time when South Africa’s major banks are increasingly seeking growth opportunities beyond their domestic market.
Currently, Nedbank has greater exposure to South Africa than some of its competitors, making this expansion a crucial step toward diversifying its earnings.
NCBA will continue to be listed on the Nairobi Securities Exchange, with 34% of its shares still available for public trading, according to the group.
This transaction is part of Nedbank’s larger strategy to expand its presence in Southern and East Africa, with management viewing Kenya as a key gateway into one of the continent’s fastest-growing regions.
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