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South Africa’s Nedbank has offered to buy control of Kenya’s NCBA Group, putting an $856 million price tag on a deal that could reshape one of East Africa’s biggest banking franchises.
Nedbank said it has made a bid for a 66% stake in NCBA in a transaction valued at 13.9 billion rand, or about $855.5 million. The buyer plans to pay 20% in cash and 80% in newly issued Nedbank ordinary shares listed in Johannesburg, using a reference price of 250 rand per share.
NCBA would stay listed on the Nairobi Securities Exchange, with the remaining 34% of shares continuing to trade publicly. If approvals are secured, NCBA would become a Nedbank subsidiary while keeping its brand and local leadership, a structure Nedbank says will preserve continuity for clients and regulators.
Nedbank chief executive Jason Quinn said the purchase fits the lender’s strategy to expand across eastern and southern Africa. He described East Africa as a priority market because of its demographics, improving economic fundamentals and its role as a trade corridor linking Africa with the Middle East, India and Asia.
NCBA, created in 2019 through the merger of NIC Group and Commercial Bank of Africa, operates in Kenya, Uganda, Tanzania and Rwanda and runs digital banking services in Ghana and Ivory Coast. The group says it serves more than 60 million customers and has 122 branches.
The announcement also shines a spotlight on NCBA’s concentrated ownership, where a handful of investment vehicles hold large blocks of stock. Company disclosures and credit rating commentary list the biggest holders as First Chartered Securities, Enke Investments, D and M Management Services, Brookshire and Westpoint Nominees.
First Chartered Securities is linked in Kenyan business reporting to the family of former central bank governor Philip Ndegwa. Enke Investments has been identified in Kenyan media as a vehicle tied to the Kenyatta family, including members such as Mama Ngina Kenyatta and Muhoho Kenyatta through Goodison Trust related interests. D and M Management Services and Brookshire are corporate shareholders, while Westpoint is a nominee account, meaning the beneficial owners may not be visible on the public register.
Based on Nedbank’s stated valuation, NCBA’s implied equity value is roughly $1.3 billion. If the tender is taken up broadly in proportion to current holdings, about two thirds of each large stake would be bought out. Under that simple pro rata assumption, First Chartered’s expected payout would be about $127.8 million, Enke about $112.9 million, D and M about $98.7 million, Brookshire about $73.8 million and Westpoint about $65.8 million. Each total would be split 20% in cash and 80% in Nedbank shares.
The final numbers could shift if major shareholders tender less, or if the offer is oversubscribed and scaled back. Nedbank did not provide a closing date for the transaction. Markets will also watch how regulators in multiple countries handle the cross border takeover and what it means for competition in Kenya’s banking market, especially in corporate lending and digital finance.
