- South Africa's Nedbank finalised its acquisition of a 66% stake in Kenya's NCBA Group, marking a major cross-border banking deal
- The Kenyatta, Ndegwa and Merali families are set to receive a combined KSh 7.84b in cash alongside newly issued Nedbank shares
- NCBA will retain its name, Nairobi headquarters and management under the new ownership structure
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TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
South Africa's Nedbank has completed its acquisition of a 66% controlling stake in NCBA Group, the Nairobi-listed lender whose shareholders include some of Kenya's most prominent business families.
Source: Twitter
Under the terms of the transaction, the Kenyatta, Ndegwa and Merali families stand to receive approximately KSh 7.84 billion (USD 60.3 million) in cash, in addition to roughly 15 million newly issued Nedbank shares valued at around KSh 55.4 billion (R4.26 billion) based on Monday's Johannesburg Stock Exchange price.
The figures assume each family tendered 66% of its respective holding as entitled under the deal.
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Nedbank's offer was structured at KSh 21 in cash plus 4.02994 new Nedbank shares for every NCBA share acquired.
How was NCBA shareholding?
The Ndegwa family, descendants of the late Central Bank of Kenya governor Philip Ndegwa, was NCBA's single largest shareholder, holding a 14.9% stake through First Chartered Securities.
The Kenyatta family held its position primarily through Enke Investments, which controlled 13.2% of the bank.
The Merali family's investment vehicle, Yana Investments, held a further 5.4%.
Trading in NCBA shares on the Nairobi Securities Exchange is expected to be suspended from around October 21 until November 2 to allow the share register to be reconciled.
Distribution of both the cash consideration and the new Nedbank shares is scheduled to begin on November 3.
What are Nedbank's East Africa ambitions?
Nedbank Chief Executive Jason Quinn described the completed transaction as one that "establishes a significant presence for Nedbank in East Africa," signalling the South African lender's intent to expand its footprint beyond southern Africa.
Despite the change in control, NCBA will continue operating under its existing name, retain its current management team and remain headquartered in Nairobi.
The remaining 34% of NCBA shares that were not part of the transaction will continue to trade on the Nairobi bourse.
How was NCBA formed?
NCBA Group was formed in 2019 through the merger of NIC Bank and Commercial Bank of Africa, two institutions with deep ties to Kenya's established business elite.
The combination created one of Kenya's largest banks by assets and was intended to strengthen the group's competitive position against larger rivals.
Nedbank's move to acquire a majority stake follows a broader trend of pan-African banking consolidation, as regional lenders seek scale and geographic diversification to sustain growth amid increasing competition and tighter regulatory environments across the continent.
Source: TUKO.co.ke