CBK Greenlights Nedbank’s Majority Stake Acquisition in NCBA Group

The Central Bank of Kenya has officially approved a deal that will see South Africa’s Nedbank Group take control of one of Kenya’s largest lenders.

In a landmark decision dated August 28, 2026, the Central Bank of Kenya (CBK) gave the green light for Nedbank Group Limited to acquire a 66% stake in NCBA Group PLC. The approval, granted under Section 13(4) of the Banking Act, marks a significant shift in the Kenyan banking landscape and signals deeper South African investment into East Africa’s financial sector.

Deal Details and Timeline

The acquisition, which will take effect upon completion of the transaction in accordance with the agreement between the two parties, was first announced in January 2026. At that time, Nedbank revealed its intention to acquire a two-thirds shareholding in NCBA as part of a broader strategy to establish a stronger footprint in the East African region.

The investment is valued at upwards of USD 855.5 million, underscoring Nedbank’s commitment to the Kenyan and regional markets.

A Strategic Union of Strengths

Nedbank Group CEO Jason Quinn highlighted the complementary nature of the two institutions, describing the proposed deal as a natural alignment of strengths.

“NCBA offers a strong brand presence, an extensive regional network, advanced digital capabilities and deep customer reach which naturally aligns with Nedbank’s established Corporate and Investment Banking expertise, cross-border structuring capabilities, and strong balance sheet.”

He further noted:

“By combining NCBA’s substantial local presence and Nedbank’s capital base, expertise and enduring commitment to Africa, we see a compelling platform for sustainable growth in the region.”

What Changes for NCBA?

Following the transaction, NCBA will become a subsidiary of Nedbank Group. However, the remaining 34% of shares will continue to trade publicly on the Nairobi Securities Exchange (NSE), ensuring that local and international investors retain a stake in the lender’s future.

Regulatory Oversight

CBK’s approval is a critical regulatory milestone, ensuring that the transaction meets Kenya’s banking laws and safeguards the stability of the financial system. The central bank’s statement confirmed that the acquisition complies with all statutory requirements and will proceed in line with the terms agreed upon by both parties.

What This Means for the Region

This acquisition is expected to:

• Strengthen cross-border banking services between East and Southern Africa.
• Enhance NCBA’s capital base through Nedbank’s robust balance sheet.
• Boost digital banking innovation by combining NCBA’s local tech expertise with Nedbank’s global resources.
• Increase foreign direct investment into Kenya’s financial sector.

Key Takeaways

• CBK approval secures regulatory compliance for the 66% stake acquisition.
• Nedbank’s investment of over $855M signals strong confidence in Kenya’s economy.
• NCBA remains listed on the NSE with 34% public float.
• Strategic alignment promises growth in corporate banking, digital services, and regional expansion.