Standard Bank Group’s Kenyan unit, Stanbic Holdings Plc, is in talks to acquire NCBA Group Plc in a transaction that would create Kenya’s third-largest lender with assets of about KSh 1.1 trillion, this is according to a story published in a Kenyan online news paper called, The Kenyan Wall Street.
In an earlier 2023 interview, Regional Chief Executive, Patrick Mweheire said the bank’s strategy was to identify a partner that would help elevate Stanbic into Kenya’s top tier.
If concluded, the transaction would strengthen Standard Bank’s footprint across East Africa, where the group already operates in Kenya, Uganda, Tanzania, South Sudan, and Ethiopia.
For NCBA, which has recently expanded its digital banking and insurance businesses, the merger could provide larger regional scale and capital flexibility.
Kenya’s banking sector, which includes around 40 commercial banks, has been under pressure to consolidate amid tougher capital rules and slower credit growth. A merger between Stanbic and NCBA would be the largest since the 2019 combination of NIC Bank and CBA Group that created NCBA.
Neither NCBA Chief Executive John Gachora nor Stanbic Kenya CEO Joshua Oigara responded to Bloomberg’s requests for comment. Standard Bank said any announcements would be made through official regulatory channels.
NCBA surged 9.7% to KSh76.25 on the Nairobi Securities Exchange, a new all-time high, after reports of merger talks with Stanbic Holdings that could create Kenya’s third-largest bank with KSh1.1 trillion in assets.
Bloomberg first reported the discussions on Tuesday, citing unnamed sources briefed on the matter.