Table of Contents
The $352 million stake held by two of Kenya’s richest families has moved to the center of attention as South Africa’s Nedbank makes a bold play for control of NCBA Group, one of East Africa’s most established lenders. At issue is a proposed R13.9 billion ($856.4 million) transaction that would reshape ownership of the Nairobi-based bank and place a spotlight on the long-standing holdings of the Kenyatta and Ndegwa families.
Nedbank targets NCBA majority stake
Nedbank, led by CEO Jason Quinn, has submitted an offer to acquire 66 percent of NCBA Group. If completed, the deal would see NCBA become a subsidiary of the Johannesburg-listed lender, while the remaining 34 percent of its shares would continue to trade on the Nairobi Securities Exchange. The structure of the offer underscores the scale of the bet: 20 percent of the consideration will be paid in cash, with the remaining 80 percent settled through newly issued Nedbank ordinary shares listed on the JSE, priced at R250 ($15.4) per share.
For Quinn, the transaction marks an important step in Nedbank’s regional ambitions. He has described the proposed acquisition as a milestone in the bank’s push to deepen its presence in southern and East Africa, pointing to what he called “highly complementary strengths.” In his words, NCBA brings a strong brand, a wide regional network and digital capabilities, while Nedbank contributes its corporate and investment banking expertise and capital base.
Combined family holdings worth $352 million
The foundation of NCBA Group is deeply ingrained in Kenya's financial system. The Nairobi-based lender was established in 2019 following the historic merger of NIC Bank Group and Commercial Bank of Africa Group, two lenders with rich histories in the nation's banking industry. Since then, NCBA has established itself as a major force in East Africa by expanding its regional reach beyond Kenya into Tanzania, Rwanda, Uganda, and Côte d'Ivoire.
It is against this backdrop that the shareholdings of the Kenyatta and Ndegwa families have come into sharp focus. The Kenyatta family, through Enke Investments, owns 217.5 million shares in NCBA, thus representing a 13.2 percent stake valued at Ksh21.3 billion ($165.1 million). The Ndegwa family, through First Chartered Securities, holds 246.15 million shares, equivalent to a 14.94 percent stake worth Ksh24.12 billion ($186.9 million). Together their combined holding stands at 463.65 million shares with a market value of Ksh45.42 billion ($352 million).
Those numbers matter because Nedbank’s offer is being made to all NCBA shareholders on a pro rata basis. The South African lender is seeking to buy out investors largely through its own shares, alongside a cash component. Under the terms disclosed, small investors are set to receive a higher buyout price of Ksh105 ($0.81) per share for the 66 percent stake on offer, while high-net-worth investors will receive a combined price of Ksh98.72 ($0.76) per share through the composite cash-and-stock structure.
$856 million bid sparks regional buzz
For Kenya’s market watchers, the bid is notable not only for its size but also for what it signals about the value placed on established East African banking franchises. NCBA’s evolution from a 2019 merger into a regional lender has drawn interest from a major South African bank willing to commit $856.4 million to secure control. At the same time, the deal has brought renewed attention to the substantial positions held by two prominent Kenyan families, whose $352 million stake now sits at the heart of one of the region’s most closely watched banking transactions.
