Stanbic Bank is in advanced discussions to acquire NCBA Group Plc in what could become one of the most transformative deals in Kenya’s banking sector in recent years, according to Bloomberg.
According to people familiar with the matter, the merger would create the country’s third-largest lender by assets, reshaping the competitive landscape of the East African financial industry.
Sources, who requested anonymity due to the confidential nature of the talks, said Stanbic Holdings, which is 75% owned by Johannesburg-based Standard Bank Group, Africa’s largest bank by assets, has received internal approvals to pursue the potential acquisition.
If successful, the merged entity would command assets of approximately KSh1.1 trillion ($8.5 billion), based on the latest financial filings. This would place the bank behind only Equity Group Holdings Plc and KCB Group Plc in terms of asset size, underscoring the increasing consolidation among Kenya’s top-tier lenders.
NCBA Group, which emerged in 2019 from the merger of NIC Group and Commercial Bank of Africa (CBA), has grown steadily to become one of Kenya’s leading retail and digital banking players. The bank is currently valued at around KSh125.6 billion, with its shares having surged 74% over the past 12 months amid strong investor confidence and robust earnings growth.
Following news of the potential acquisition, NCBA’s stock jumped 10% to a record KSh76.25 in Nairobi trading by mid-afternoon on Monday, reflecting heightened investor optimism. In contrast, Stanbic Holdings’ shares dipped by as much as 1.3%, though the counter remains up 63% over the past year.
Industry analysts say the proposed merger, if concluded, would mark a significant step in Standard Bank’s strategy to deepen its presence in key African markets. It would also allow the South African lender to leverage NCBA’s strong retail and digital banking franchise, alongside its regional footprint in Uganda, Tanzania, Rwanda, and Ivory Coast.
“The combination of Stanbic’s corporate banking expertise and NCBA’s retail and digital reach would create a powerhouse in both the consumer and business banking segments,” said one Nairobi-based analyst familiar with the banking sector. “It’s a strategic fit that aligns with Standard Bank’s broader goal of strengthening its regional presence.”
The discussions are still ongoing, and there is no guarantee that a final agreement will be reached, the sources cautioned. Both NCBA and Stanbic declined to comment on the matter when contacted.
If finalized, the acquisition would add to a growing trend of mergers and acquisitions in Kenya’s financial sector, driven by rising capital requirements, competition, and the need for economies of scale. The deal would also highlight the growing influence of South African banks in East Africa, a region seen as one of the continent’s fastest-growing banking markets.
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