Nedbank gets CBK nod to acquire 66pc stake in NCBA

Nedbank Group Limited has received approval from Kenya's Central Bank (CBK) to acquire a 66% stake in NCBA Group Plc, a significant move in the ownership structure of one of East Africa’s leading banking groups. According to the CBK's announcement on August 28, the transaction is set to take effect upon completion. This acquisition will effectively grant Nedbank a controlling stake in NCBA, bolstering the South African lender's presence in East Africa while consolidating one of the region’s established banking entities under a larger continental financial entity.

CBK's decision to approve the acquisition regards it as a measure to ensure the stability and resilience of the Kenyan banking sector, and to foster competition. NCBA, established in 2019 through the merger of NIC Group and Commercial Bank of Africa, operates in Kenya and has expanded into banking subsidiaries in Uganda, Tanzania, Rwanda, and a joint venture in Côte d'Ivoire. Its services extend beyond banking to include stockbroking, insurance, investment banking, and leasing.

Nedbank, a diversified financial services firm listed on the Johannesburg and Namibia Stock Exchanges, operates in several Southern African markets including Lesotho, Mozambique, Namibia, Eswatini, and Zimbabwe. The proposed acquisition is indicative of the trend of major South African financial institutions expanding their footprint in African markets, driven by the pursuit of scale, geographic diversification, and strengthened regional networks.

For NCBA, this acquisition could provide access to Nedbank's capital, expertise, and a broader African network. However, the final acquisition's timeline and the exact transaction value remain undisclosed by the CBK, with the deal contingent on the successful completion of the agreement between the two parties.