Standard Bank Group Ltd., Africa’s largest lender by assets, is pursuing one of its most significant expansion moves in recent years through a potential acquisition of NCBA Group Plc in Kenya, a transaction that could reshape the banking landscape across East Africa.
According to people familiar with the development, Stanbic Holdings Plc, Standard Bank’s Kenyan subsidiary, has secured internal approvals to initiate talks with NCBA over a possible takeover. If concluded, the deal would create Kenya’s third-largest lender by assets, with a combined balance sheet estimated at 1.1 trillion Kenyan shillings ($8.5 billion), based on the most recent financial filings.
Both institutions, led by Joshua Oigara (Stanbic) and John Gachora (NCBA), have yet to issue official statements. Standard Bank declined to comment, saying any announcements would be made through appropriate regulatory channels.
The potential acquisition underscores Standard Bank’s strategic intent to consolidate its presence in East Africa, one of the continent’s fastest-growing banking markets. Despite previously emphasizing organic growth as its preferred expansion model, the group appears ready to explore strategic acquisitions to deepen its footprint across key economies in the region.
A successful merger would elevate Standard Bank’s position in Kenya, providing access to NCBA’s extensive retail network, digital banking platforms, and a strong customer base spread across corporate, SME, and consumer segments.
It would also enhance Stanbic’s ability to compete more effectively with regional giants Equity Group Holdings Plc and KCB Group Plc, currently Kenya’s two largest banks by assets.
Preliminary discussions suggest that Standard Bank may execute the transaction through its 75% stake in Stanbic Holdings Plc, its Nairobi-based subsidiary. NCBA Group, with a market capitalization of about 125 billion shillings, has been one of the best-performing banking stocks in Kenya, surging 73% in the past year amid strong earnings growth and a stable macroeconomic environment.
On the day reports of the potential deal surfaced, NCBA shares rose 9.7% to a record 76.25 shillings, while Stanbic’s stock advanced 0.3% to 199 shillings, extending its 12-month gain to 65%. The surge highlights growing investor optimism around possible consolidation in Kenya’s fragmented banking sector.
If completed, the merger could generate significant cost synergies, streamline operational overheads, and enhance cross-border trade financing and corporate lending capabilities — critical areas of focus for Standard Bank’s regional strategy.
