Nedbank secures majority stake in Kenya’s NCBA

Two colleagues engaged in a business meeting in a modern office setting with documents and eyeglasses visible. Photo: MART PRODUCTION/Pexels

Nedbank has completed its purchase of a 66% stake in NCBA Group, Kenya’s fourth-largest bank by assets, following regulatory approval. The transaction, valued at approximately 13.9 billion South African rand (around KES 110 billion), makes NCBA a subsidiary of the Johannesburg-based financial institution.

Shareholders received KES 105 per share, with 80% paid in new Nedbank stock and 20% in cash. The bank did not require a competitive bid: owners voluntarily surrendered 1.32 billion shares, nearly 80% of NCBA’s total, exceeding Nedbank’s initial target. The buyer acquired a proportional share from each seller, preventing full divestment by any single owner.

The deal involves significant stakes from Kenya’s business elite. The Ndegwa family, descendants of former Central Bank of Kenya governor Philip Ndegwa, held 14.9% of NCBA through First Chartered Securities. The Kenyatta family owned 13.2% via Enke Investments, while the Merali family controlled 5.4% through Yana Investments. One report estimates the three families will receive about KES 7.84 billion in cash, assuming they sold 66% of their holdings.

NCBA shares were suspended from the Nairobi Securities Exchange on October 21 to update the share register. Trading is set to resume around November 2, with cash and new Nedbank shares distributed to sellers by November 3. Customers can continue accessing NCBA’s branches, digital platforms, and services without interruption.

NCBA’s financial performance remains robust. In 2025, it reported a net profit of KES 23.4 billion, an increase of 7% from the previous year. Assets grew by 8% to KES 716 billion, deposits rose by 6% to KES 532 billion, and operating income climbed by 17% to KES 73.3 billion. Digital lending was a key driver, with the bank disbursing KES 1.4 trillion in digital loans, a 33% rise, and digital operations accounting for 32% of total profit.

For Nedbank, this acquisition provides a strategic entry into East Africa without the need to build a branch network from scratch. The bank already operates in Namibia, Zimbabwe, Mozambique, Lesotho, and Eswatini, and has offshore centers in London, Dubai, the Isle of Man, and Jersey.