NAIROBI – A significant consolidation is on the horizon for Kenya’s banking sector as Stanbic Holdings Plc, the local unit of Africa’s largest bank Standard Bank Group, is in advanced talks to acquire NCBA Group Plc.
The potential merger, first reported by Bloomberg and confirmed by multiple sources, would create a financial behemoth with combined assets of approximately KSh 1.1 trillion (US $8.5 billion). This would catapult the combined entity to become the third-largest bank in Kenya by assets, trailing only Equity Group Holdings Plc and KCB Group Plc.
According to people familiar with the matter, Standard Bank Group, which holds a 75% stake in Nairobi-based Stanbic Holdings, has granted internal approvals for the acquisition discussions. The talks remain confidential and are not yet finalized.
The market reacted positively to the news. NCBA’s stock surged, jumping 9.7% to a record high of KSh 76.25 in early trading in Nairobi. The lender, currently valued at around KSh 114-125 billion, has seen its shares rise between 40% and 73% over the past 12 months, indicating strong investor confidence. Stanbic’s shares also saw a slight gain.
Leadership from both institutions has remained silent on the deal. Joshua Oigara, CEO of Stanbic Kenya, and John Gachora, CEO of NCBA, did not respond to requests for comment. Standard Bank Group, which has previously emphasized organic growth in East Africa, declined to comment, noting that any official announcements would be made through regulatory channels.
This potential merger aligns with a broader push by Kenyan regulators for a stronger, more consolidated banking landscape. The market is currently served by about 40 lenders, and authorities have been encouraging the formation of larger, better-capitalized institutions that can compete regionally and support greater economic growth.
If successful, the acquisition of NCBA by Stanbic would mark one of the most significant transformations in the sector in recent years, reshaping the competitive dynamics of Kenyan banking.
