Pull to refresh
Logo
What Changed
Following Why Sign Up
Nedbank completes 66% takeover of Kenya's NCBA Group

Nedbank completes 66% takeover of Kenya's NCBA Group

Money Moves

South Africa's Nedbank pays cash and shares for control of a top East African bank, while NCBA stays listed in Nairobi

Today: Both banks confirm completion

Overview

Updated 1 hour ago

On November 3, 1.09 billion NCBA Group shares changed hands in a single block trade on the Nairobi Securities Exchange (NSE). The sale gave South Africa's Nedbank Group a 66% controlling stake in one of East Africa's largest banks. Equity turnover on the exchange hit Ksh107.7 billion that day, against Ksh420 million the session before.

Nedbank paid Ksh23.23 billion in cash and issued 43.6 million new shares to accepting NCBA shareholders. NCBA becomes a subsidiary but keeps its name, its Nairobi headquarters and its NSE listing, with 34% still held by outside investors.

Why it matters

Nedbank gets 122 branches in five African countries; NCBA gets a bigger balance sheet to fund regional growth.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

66%
NCBA stake acquired by Nedbank
Nedbank now controls two-thirds of NCBA's issued shares.
$826.6M
Total consideration
Valued at Ksh107.37 billion at the exchange rate agreed in the offer.
1.087B
NCBA shares transferred
Transferred to Nedbank in one block trade on November 3.
79.88%
Shares tendered by NCBA holders
More than Nedbank accepted; excess applications were scaled back.
34%
NCBA shares still publicly held
560,156,641 shares remain with other investors.
122
NCBA branches
Across Kenya, Uganda, Tanzania, Rwanda and Ivory Coast.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

MD
Michael Howard Davis
Nedbank Group chief financial officer and NCBA non-executive director
Appointed to NCBA board effective November 3, 2026
AB
Anél Bosman
Chief executive of Nedbank Corporate and Investment Banking; NCBA non-executive director
Appointed to NCBA board effective November 3, 2026
EK
Esther Wanjiku Kungu
NCBA Group company secretary
Appointed group company secretary
KH
Keagan Higgins
Investment analyst at Anchor Capital
Analyst covering the transaction

Organizations Involved

Nedbank Group
Nedbank Group
Bank holding company
Acquirer; now holds 66% of NCBA

One of South Africa's largest banking groups, listed in Johannesburg.
NCBA Group
NCBA Group
Bank holding company
Now a subsidiary of Nedbank; still listed in Nairobi

Kenyan bank with 122 branches across five African countries.
Nairobi Securities Exchange
Nairobi Securities Exchange
Stock exchange
Hosted the block trade that transferred NCBA shares

Kenya's main stock exchange, where NCBA shares trade.
CM
Capital Markets Authority
Kenyan financial regulator
Approved the takeover

Kenya's securities regulator, which cleared the partial offer.

Timeline

January 2026 November 2026

6 events Latest: Today
Tap a bar to jump to that date

  1. Both banks confirm completion

    Today Completion

    Nedbank and NCBA announce the deal has closed. NCBA is now a subsidiary; two Nedbank executives join its board.

  2. Block trade transfers 1.09 billion NCBA shares

    Transaction

    A single privately negotiated trade moves 66% of NCBA to Nedbank. NCBA shares resume trading and close at KSh91.75, up 4.26%.

  3. NSE suspends NCBA trading before settlement

    Market

    Trading is halted at the close to allow the share transfer to be executed as a block trade.

  4. Deal becomes unconditional after Kenyan approval

    Regulatory

    The last outstanding approvals, including the Central Bank of Kenya's, clear the way for settlement.

  5. Offer closes with 79.9% of NCBA tendered

    Milestone

    NCBA shareholders offer 1.316 billion shares, more than Nedbank needed, leaving the final allocation subject to scaling.

  6. Nedbank announces offer for 66% of NCBA

    Announcement

    Nedbank proposes to buy about two-thirds of NCBA from shareholders on a pro-rata basis, part cash and part new Nedbank shares.

Scenarios

1

Nedbank books NCBA as a subsidiary in its 2026 results

Likely Resolves by Q1 2027

Discussed by: Nedbank's own completion announcement, which says consolidation starts in the fourth quarter of 2026

Nedbank has said it expects to consolidate NCBA's results from the fourth quarter of 2026. The test comes in its full-year results, when NCBA's balance sheet and earnings should appear inside the group's numbers for the first time. Any delay would show integration is harder than the timetable suggests.

2

NCBA keeps its brand and NSE listing through 2027

Likely Resolves by End of 2027

Discussed by: Both companies' completion statements, which commit to retaining the Nairobi listing and local leadership

Both banks said NCBA will keep its name, Nairobi headquarters and stock exchange listing. The 34% held by outside investors leaves a public float, and the test is whether that structure survives a year of integration. A delisting or rebrand would mark a sharp break from those commitments.

3

Nedbank announces a second East African acquisition by end-2027

Unlikely Resolves by End of 2027

Discussed by: Anchor Capital analyst Keagan Higgins, who calls the deal a meaningful step rather than parity with larger peers

Higgins describes the NCBA purchase as a more focused African strategy after Nedbank's exit from Ecobank. A second deal would show whether NCBA is a platform for further expansion or a one-off. The trigger would be a SENS announcement of another bank purchase in the region.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2007

Standard Bank buys control of Nigeria's IBTC (2007)

Standard Bank, Africa's largest lender by assets, bought 50.1% of Nigeria's IBTC Chartered Bank, creating Stanbic IBTC. The deal gave the South African group a foothold in Africa's biggest economy while leaving the Nigerian bank listed in Lagos.

Then

Stanbic IBTC grew into one of Nigeria's largest banks by assets.

Now

Currency crises and tougher regulation later weighed on returns, but the subsidiary stayed central to Standard Bank's Africa strategy.

Why this matters now

Same structure as Nedbank's NCBA deal: a South African bank takes control while the target keeps a local listing and brand.

2017-2018

Barclays sells down Barclays Africa to Absa (2017-2018)

Barclays PLC cut its 62.3% stake in Barclays Africa Group to about 15%, and the Johannesburg-based business renamed itself Absa Group in 2018.

Then

Absa became independent of its British parent and had to rebuild capital and separate shared systems.

Now

The bank remained one of South Africa's big four but spent years working through the separation.

Why this matters now

Shows the reverse flow, a foreign parent leaving an African bank, and how long ownership changes take to settle.

Sources

(8)
+2
Shore Africa Nairobi Leo NCBA Group The Standard Nedbank Group SENS Business Today Kenya Moneyweb The Star