The Central Bank of Kenya has approved South Africa’s Nedbank Group to acquire up to 66 percent of NCBA Group’s issued share capital, in a deal valued at Kes 116.3 billion.
CBK issued the approval on August 28, 2026, under Section 13(4) of the Banking Act, and confirmed the decision in a statement dated August 31. The regulator said the acquisition takes effect once Nedbank and NCBA complete the transaction in accordance with the terms of their agreement.
Following the regulator’s green light, NCBA Group said in a press statement that completion of the transaction is now expected towards the end of the third quarter of 2026. Settlement of the consideration due to accepting shareholders will follow within 14 trading days of the offer becoming unconditional, once all remaining conditions precedent are satisfied. NCBA said a further announcement will be made once the offer becomes unconditional in all respects.
NCBA Group Managing Director John Gachora welcomed the approval, thanking the Central Bank of Kenya for its review and saying the lender remains committed to managing the transition responsibly for customers, employees, shareholders and the wider financial sector.
The approval follows other regulatory clearances already secured, including from South Africa’s Prudential Authority and Financial Surveillance Department, Kenya’s Capital Markets Authority, the National Bank of Rwanda, the Bank of Tanzania, the COMESA Competition and Consumer Commission, the East African Community Competition Authority and the Tanzanian Fair Competition Commission. NCBA said the remaining approvals are progressing according to their own timelines.
Nedbank’s offer for NCBA closed on July 10, 2026. Shareholders tendered 79.9 percent of NCBA’s issued shares, representing an oversubscription of 121 percent against the 66 percent target. Nedbank scaled back allocations on a pro rata basis to acquire 1.087 billion shares, equivalent to 66 percent of the company.
| Item | Figure |
|---|---|
| Stake acquired | Up to 66 percent |
| Deal value | Kes 116.3 billion |
| CBK approval date | August 28, 2026 |
| Statutory basis | Section 13(4), Banking Act |
| Shares tendered | 79.9 percent of NCBA’s issued capital (121% oversubscription) |
| Expected completion | End of Q3 2026 |
| Settlement of consideration | Within 14 trading days of offer becoming unconditional |
| Public float post completion | 34 percent, NCBA remains listed on the NSE |
Nedbank’s proposed acquisition of NCBA positions Kenya as a hub for East Africa’s banking expansion.
NCBA will retain its brand, management and board structure following completion. Nedbank will nominate at least two directors to the NCBA board. NCBA shareholders will appoint one representative to Nedbank’s board.
The transaction has cleared competition reviews from the Common Market for Eastern and Southern Africa Competition Commission and the East African Community Competition Authority. Kenya’s Capital Markets Authority granted Nedbank an exemption from making a mandatory offer for all outstanding NCBA shares, allowing the partial acquisition to proceed while NCBA retained its Nairobi Securities Exchange listing.
NCBA operates in Kenya, Uganda, Tanzania and Rwanda, with digital banking operations in Ghana and Ivory Coast. Nedbank currently operates in Eswatini, Lesotho, Mozambique, Namibia, South Africa and Zimbabwe.
NCBA reported profit after tax of KSh 12.4 billion for the six months to June 30, 2026, up 12.2 percent year on year. Digital loans disbursed rose 26.9 percent to KSh 819 billion. Customer deposits rose 11 percent to KSh 551 billion.
Completion of the acquisition remains subject to outstanding conditions precedent in the agreement between Nedbank and NCBA, with a further update expected once the offer becomes unconditional.
For more coverage of Kenya’s banking sector, visit Khusoko’s Banking & Finance section.
