The Central Bank of Kenya (CBK) has approved the acquisition of up to 66% of NCBA Group PLC by South Africa-based Nedbank Group Limited, clearing a major regulatory hurdle for a change in ownership of one of East Africa’s leading financial services groups.
CBK said the approval was granted on August 28 under Section 13(4) of the Banking Act, with the transaction expected to take effect once the agreement between the two companies is completed.
The regulator announced the approval on Monday, August 31, as the proposed deal moves closer to completion.
“The Central Bank of Kenya (CBK) announces the acquisition of up to 66 percent of the shareholding of NCBA Group PLC (NCBA) by Nedbank Group Limited (Nedbank). This follows the approval by CBK on August 28, 2026, under Section 13 (4) of the Banking Act,” CBK said.
The transaction is significant for Kenya’s banking industry because it would give Nedbank a controlling stake in NCBA, strengthening the South African lender’s position in East Africa while bringing a major regional banking group under new ownership.
CBK supported the transaction, citing its potential contribution to the stability and resilience of the banking sector as well as greater competition.
“CBK welcomes this transaction as it will ensure continued stability, enhance the resilience of the Kenyan banking sector and promote competition,” the regulator said.
NCBA has grown into a major regional financial services group following the 2019 merger between NIC Group and Commercial Bank of Africa (CBA).
The merger combined two established Kenyan banking institutions and created a group with operations extending beyond the domestic market. NCBA is listed on the Nairobi Securities Exchange and has banking subsidiaries in Kenya, Uganda, Tanzania and Rwanda, in addition to a joint venture in Côte d’Ivoire.
“NCBA Group PLC is a financial services conglomerate in East Africa, headquartered in Nairobi, Kenya. The group was formed in 2019, following a merger of NIC Group and Commercial Bank of Africa (CBA). NCBA is listed on the Nairobi Securities Exchange and owns banking subsidiaries in Kenya, Uganda, Tanzania, Rwanda and a joint venture in Cote D'Ivoire,” CBK said.
The group has also diversified beyond commercial banking into stock brokerage, insurance, investment banking and leasing.
The proposed acquisition therefore gives Nedbank access to an established financial services network in Kenya and other East African markets.
It also comes as African banks increasingly seek regional expansion and larger customer bases through acquisitions and strategic investments.
Nedbank is one of South Africa’s major financial services groups. It is incorporated in South Africa and has its primary listing on the Johannesburg Stock Exchange, alongside a dual listing on the Namibia Securities Exchange.
Its business interests span banking, investment, insurance and stockbroking, while its operations extend across several Southern African markets.
“Nedbank Group is a public company incorporated in South Africa. It is headquartered in South Africa with primary listing on the Johannesburg Stock Exchange and a dual listing on the Namibia Securities Exchange. It is a diversified financial services provider, offering banking, investment, insurance and stockbroking services,” CBK said.
Nedbank operates through subsidiaries and banking businesses in Lesotho, Mozambique, Namibia, Eswatini and Zimbabwe, giving the group an established footprint across Southern Africa.
The acquisition would consequently link NCBA’s East African network with Nedbank’s wider African operations, potentially creating opportunities for expanded financial services, investment and cross-border business.
For NCBA, the deal could provide access to the resources, expertise and regional capabilities of a larger African financial institution. For Nedbank, the transaction offers an opportunity to deepen its presence in Kenya, one of the continent’s most developed banking markets and a major financial centre in East Africa.
However, CBK stressed that its approval does not by itself complete the transaction.
“The acquisition shall take effect upon completion of the transaction in accordance with the terms of the Agreement between the two parties,” the regulator said.
The approval therefore clears a key regulatory stage while leaving the transaction to proceed in accordance with the agreement reached by Nedbank and NCBA.
The deal is expected to attract attention across the region because of NCBA’s established presence in East Africa and Nedbank’s position as a major South African financial institution.
CBK’s endorsement also signals the regulator’s assessment that the proposed ownership change can support the broader objectives of maintaining a stable, resilient and competitive Kenyan banking sector.