NCBA Group is set to enter a new chapter under South African ownership after Nedbank Group completed the purchase of a majority stake in the Kenyan lender, paving the way for closer financial ties between East and Southern Africa.

The deal, finalised after regulatory approvals, gives Nedbank a 66 per cent controlling interest in NCBA, making the Nairobi-based bank a subsidiary of the Johannesburg-listed financial services group.

The transaction is valued at approximately 13.9 billion South African rand, equivalent to about Sh110 billion. Despite the change in ownership, NCBA will retain its name, headquarters in Nairobi, local management and listing on the Nairobi Securities Exchange (NSE).

The arrangement allows the bank to maintain its identity in the Kenyan market while gaining the financial backing of a larger regional institution.

Under the acquisition terms, shareholders accepting the offer receive 80 per cent of the consideration in newly issued Nedbank shares and 20 per cent in cash. The offer places the consideration value at Ksh 105 per NCBA share, although the value of the shares received will depend on the applicable settlement terms.

The offer attracted tenders for approximately 1.316 billion NCBA shares, representing 79.9 per cent of the bank’s issued shares. Nedbank subsequently scaled back applications proportionately to secure its intended 66 per cent stake.

Strong financial results underpin acquisition

NCBA enters the partnership after recording improved earnings and growth in its core businesses.

For the year ended December 2025, the lender posted a net profit of Ksh 23.4 billion, a seven per cent increase from Sh21.9 billion recorded in the previous year.

Its total assets rose eight per cent to Ksh 716 billion, while customer deposits increased six per cent to Sh532 billion. Operating income climbed 17 per cent to Ksh 73.3 billion.

The bank’s digital lending operations and asset finance business are among the areas expected to attract further investment under the new ownership.

NCBA disbursed Sh1.4 trillion in digital loans during 2025, marking a 33 per cent increase. Its digital business accounted for 32 per cent of group profitability, demonstrating the importance of technology-driven financial services to its operations.

NCBA Group Managing Director John Gachora said the acquisition would strengthen the lender’s ability to pursue its ambitions while maintaining continuity for customers.

“The name is the same, the people are the same, but the ambition and capabilities are tremendously magnified,” he said.

Nedbank targets East African growth

For Nedbank, the investment provides an established entry point into East Africa, where demand for credit, corporate financing and digital financial services continues to create opportunities for banks.

The group already operates in several Southern African markets, including Namibia, Zimbabwe, Mozambique, Lesotho and Eswatini, alongside offshore centres in London, Dubai, the Isle of Man and Jersey.

Chief Executive Jason Quinn said the transaction would establish a significant presence in East Africa and support the group’s strategy of connecting banking platforms across the continent.

The acquisition also comes as Kenya’s banking sector expands. Central Bank of Kenya data showed industry net assets reached Ksh 8.35 trillion in December 2025, up from Ksh 7.57 trillion a year earlier.

For NCBA customers, the immediate message is continuity. The lender has said its branches, products, leadership and digital channels will remain unchanged as it begins operating under Nedbank’s majority ownership.