Nedbank looking to acquire a Kenyan bank

May 17, 2016

Nedbank is seeking opportunities for mergers and acquisitions in Kenya.

The South African banking group Nedbank is currently in talks with officials from a Kenyan bank to acquire a majority stake in the institution.

"In the next 12 months, we will certainly have finalised an agreement," said the bank's chief operating officer Nkuhlu Nfondo, quoted by the Ecofin agency.

Nedbank is seeking opportunities for mergers and acquisitions in Kenya, after the country's central bank decided last November to suspend the licensing of new commercial banks in a bid to drive consolidation of the banking industry.

The regulator said it would continue to approve mergers and acquisitions.

Kenya has one of the highest ratios of banks relative to population in the world, standing at 0.93, according to official figures quoted by The Star. There are 41 banks serving about 44 million people, which equates to one bank for every 1.07 million people. In comparison, Nigeria has a ratio of 0.12 and South Africa a ratio of 0.35.

This announcement from NedBank comes just days after South African media revealed that the group was finalising the takeover of Mozambican bank Banco Unico.ADNFCR-2976-ID-801818530-ADNFCR