The Central Bank of Kenya (CBK) has officially approved the acquisition of up to 66 percent shareholding NCBA Group PLC by South Africa's Nedbank Group Limited, marking a historic moment in the East African banking industry.

On Monday, the Central Bank announced that it granted the approval on 28th August 2026 in line with the provisions of Section 13(4) of the Banking Act.

The move offers the green light to a transaction that will see one of South Africa's "Big Four" banks take control of Kenya's third-largest lender by assets.

NCBA Group-Nedbank acquisition was first announced in January this year as the South African bank unveiled plans to evolve into a key player in East Africa's financial services industry.

The acquisition, which is valued at roughly $856 million (KES 111 billion), will see Nedbank acquire its stake through a partial pro-rata tender offer, structured as a combination of cash and shares.

It is poised to leave a 34 percent free float of NCBA shares trading on the Nairobi Securities Exchange (NSE), ensuring continued public market participation.

Earlier, Nedbank Group CEO Jason Quinn highlighted the complementary strengths of the two institutions, stating that the deal unites NCBA's regional network and digital capabilities with Nedbank's established corporate and investment banking (CIB) expertise and strong balance sheet. 

Following the acquisition, NCBA will operate as a subsidiary of Nedbank but will retain its brand, local leadership team and NSE listing.

NCBA Group was formed in 2019 following the merger of NIC Group and Commercial Bank of Africa and has regional presence in Uganda, Tanzania, Rwanda, Ivory Coast and Ghana. 

Beyond fintech, the acquisition is expected to bolster corporate and investment banking, infrastructure finance, and wealth management services in the region. Quinn noted that Kenya's infrastructure-led growth, particularly in renewables and resources, presents significant opportunities that Nedbank is well-positioned to support.

Additionally, the deal will mark a significant moment for Kenya's banking sector, representing a major foreign direct investment. 

CBK Governor Kamau Thugge welcomed the transaction, stating it would ensure continued stability, enhance the resilience of the banking sector, and promote competition. 

The acquisition has already received necessary approvals from the Capital Markets Authority (CMA) and the Competition Authority of Kenya (CAK). CBK's approval is the last major regulatory hurdle, with the transaction now set to take effect upon completion in accordance with the terms of the agreement between the two parties.

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