Stanbic Holdings, the Kenyan arm of Standard Bank Group Ltd, is reportedly in talks to acquire NCBA Group Plc, in what could become one of the most significant banking mergers in recent Kenyan history.
According to a report by Bloomberg, the discussions—which remain private—could lead to the formation of Kenya’s third-largest lender by assets, combining two of the region’s strongest financial institutions.
Bloomberg quoted people familiar with the matter as saying that Stanbic Holdings, which is 75% owned by South Africa’s Standard Bank Group, has already received internal approvals to proceed with the negotiations.
If the deal is finalized, the merged entity would boast assets valued at nearly KSh 1.1 trillion, based on recent filings — trailing only Equity Group Holdings Plc and KCB Group Plc in size.
Executives from both sides—Joshua Oigara, Chief Executive Officer of Stanbic Holdings, and John Gachora, CEO of NCBA Group—did not immediately respond to Bloomberg’s requests for comment. Standard Bank Group, which has previously emphasized organic growth in East Africa, also declined to comment, saying any announcements would be made through official regulatory channels.
NCBA, currently valued at about KSh 125 billion, has seen its share price surge 73% over the past 12 months. On Tuesday morning, the lender’s stock climbed 9.7% to an all-time high of KSh 76.25, while Stanbic’s shares edged up 0.3% to KSh 199, extending their annual gains to 65%.
While the talks are ongoing and a final agreement has not yet been reached, Bloomberg reports that both sides are keen to conclude a transaction in the coming months, subject to regulatory and shareholder approvals.
Kenya’s banking industry, which currently has about 40 commercial banks, has been under growing pressure from authorities to consolidate and form stronger, well-capitalized institutions. Analysts say the potential Stanbic–NCBA merger would align with this goal — creating a deeper financial institution capable of funding mega projects and supporting the country’s expanding economy.
If completed, the deal would mark one of the biggest mergers in Kenya’s financial sector in recent years, signaling renewed investor confidence and accelerating the trend of regional banking consolidation.
