Standard Bank Group’s Kenyan subsidiary, Stanbic Holdings, is reportedly in advanced talks to acquire NCBA Group Plc in a deal that could reshape Kenya’s banking landscape.

According to Bloomberg, the merger would create the country’s third-largest lender with combined assets valued at approximately KSh1.1 trillion (US$8.5 billion).

NCBA, which currently holds a market valuation of KSh125 billion, has experienced a remarkable 73% rise in its stock over the past year, signaling strong investor confidence.

During early trading in Nairobi, its shares jumped nearly 9.7% to a record KSh76.25, while Stanbic’s stock rose 0.3% to KSh199, extending its yearly gains to 65%.

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Confidential Talks Underway

The discussions between the two lenders remain confidential and have not yet been finalized.

According to sources, Standard Bank Group Ltd., Africa’s largest bank by assets and the majority shareholder of Stanbic with a 75% stake, has already granted internal approvals for the talks.

However, there is no guarantee that a final agreement will be reached, with negotiations expected to continue in the coming months.

Neither Stanbic CEO Joshua Oigara nor NCBA CEO John Gachora responded to requests for comment.

Standard Bank Group also declined to discuss the matter, noting that any formal announcements would be made through regulatory channels once decisions are finalized.

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A Move Toward Stronger, Resilient Banks

If successful, the merger would position the new entity just behind Equity Group Holdings Plc and KCB Group Plc, cementing its role as a major player in Kenya’s financial sector.

The potential consolidation aligns with the Central Bank of Kenya’s push for stronger, better-capitalized institutions amid a crowded market of nearly 40 commercial banks.

Authorities have consistently encouraged mergers and acquisitions to create lenders capable of supporting Kenya’s expanding economy and youthful population.

The proposed Stanbic-NCBA merger marks one of the most significant consolidation efforts in recent years, reflecting a growing trend toward regional financial integration in East Africa.

If concluded, the deal would not only strengthen Stanbic’s footprint in Kenya but also reinforce Standard Bank Group’s long-term ambition to expand its East African market share, a region it has previously pledged to grow both organically and through strategic partnerships.

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NCBA building in Kenya. PHOTO/ Courtesy.