A potential merger between Stanbic Holdings Plc and NCBA Group Plc is shaping up to be one of the most consequential transactions in Kenya’s banking industry this year.
According to reports by Bloomberg, the Standard Bank Group’s Kenyan subsidiary is in discussions to acquire NCBA in a deal that could create the country’s third-largest lender with assets estimated at about Ksh 1.1 trillion.
Standard Bank Group, which controls 75 % of Stanbic Holdings, has previously outlined plans to expand its East African presence through targeted acquisitions by 2025.
The proposed merger would place the new institution just below Equity Group Holdings and KCB Group in asset size, deepening competition among the country’s top-tier lenders.
People familiar with the talks say the discussions remain at a preliminary stage, and no binding agreement has been signed.
Both Stanbic and NCBA executives have declined to comment, citing the need to follow official disclosure procedures.
Analysts believe the merger could reshape the financial hierarchy in Nairobi’s banking market and influence future consolidation strategies among mid-tier banks.
For Standard Bank, this transaction represents an opportunity to strengthen its regional foothold through scale, capital depth, and a wider deposit base.
NCBA, valued at around Ksh 114 billion, reported assets of Ksh 656 billion and customer deposits of Ksh 496 billion in the first quarter of 2025.
Stanbic’s asset book stood at KSh774 billion in the same period, positioning the merged entity among the region’s most capitalised institutions.
Kenya’s regulators have in recent years encouraged consolidation to produce stronger lenders capable of withstanding market pressures.
Should the deal progress, it would mark the largest banking combination since the 2019 merger between NIC Bank and CBA Group, which formed NCBA.
The Regulatory Hurdle
The proposed transaction would require clearances from several agencies, among them the Central Bank of Kenya (CBK), the Competition Authority of Kenya (CAK), and the Capital Markets Authority (CMA).
Each body operates within a defined statutory framework and examines different aspects of such a deal.
The CBK would assess the transaction’s impact on capital adequacy, liquidity, governance, and financial stability.
It would also evaluate how the merged entity intends to integrate systems and manage potential credit or operational risks during the transition period.
The CAK would evaluate potential effects on market concentration, consumer choice, and competitive balance.
Its review typically examines whether the merged entity could dominate key segments such as deposits, lending, and payments, and if necessary, the Authority can impose conditions to safeguard market fairness.
The CMA would supervise disclosures and investor communication, given that both Stanbic and NCBA are listed entities.
Any formal offer or restructuring plan would have to be communicated transparently to shareholders and filed in accordance with the Takeover and Mergers Regulations.
Industry Implications
If concluded, the merger would alter the competitive structure of Kenya’s financial sector as the combined balance sheet would position the entity within reach of the two largest lenders, while potentially unlocking capital efficiency and regional lending capacity.
However, such consolidation also prompts questions about branch rationalisation, digital investment, and employment adjustments.
Past mergers have demonstrated that integration can be complex, requiring careful planning to protect customer data, maintain service continuity, and preserve market confidence.
Analysts note that the merged institution’s direction will depend heavily on how integration is managed and whether the leadership aligns around a common strategic vision.
The balance between regional ambition and domestic stability will be central to the merger’s success.
The Broader Context
Kenya’s banking landscape has been evolving toward larger, more resilient entities as regulators push for higher capital buffers.
Several mid-sized banks are exploring partnerships or mergers to meet these requirements and improve cost efficiency.
A successful Stanbic–NCBA merger could accelerate this trend and influence the strategies of other banks seeking scale or new market niches.
It could also serve as a test of how far cross-border ownership structures can deepen regional banking integration.
What Lies Ahead
For now, all eyes remain on the official filings and statements from the parties involved.
The process will be guided by regulatory timelines and disclosure obligations. Should the discussions progress, formal applications to the relevant agencies will provide greater clarity on structure, valuation, and implementation timelines.
Until then, the market continues to speculate on what a merged Stanbic–NCBA institution could mean for Kenya’s banking order, customer experience, and investor confidence in one of East Africa’s most dynamic financial markets.
