Kenya delivered one of the most spectacular performances in African mergers and acquisitions in H1 2026: deal value surged 670.5% year-on-year to US$1.44 billion. The country climbed from sixth to first place on the continent by value — overtaking Nigeria, long unchallenged at the top. A figure that reflects far more than a one-off shock: Kenya is establishing itself as East Africa's definitive investment hub.
Nedbank-NCBA: The Mega-Deal That Reshuffled the Rankings
At the heart of this surge is South African bank Nedbank's offer to acquire a 66% stake in NCBA Group — one of Kenya's leading banking conglomerates — valued at approximately US$855 million. The transaction ranks as the continent's second-largest deal in Q1 2026 across all sectors.
The deal reflects the growing appeal of Kenya's banking sector, which concentrates over three-quarters of national financial activity. For Nedbank, the acquisition is a long-term bet on East African market growth and a privileged entry point into a rapidly expanding customer base.
Kenyan Banks Bet on Digital Capabilities
Beyond the Nedbank-NCBA mega-deal, another transaction signals an underlying trend: KCB Group, Kenya's second-largest bank by assets, took a majority stake in local fintech Riverbank Solutions. This move illustrates the strategy of major East African banks: acquire digital capabilities rather than build them in-house, in a market where neobank and mobile money competition is intensifying.
Kenya recorded 25 transactions in H1 — fewer than Nigeria's 39 — but now represents roughly eight times more capital raised than its West African rival, whose deal value collapsed 88.9% to just US$105.8 million. Nigeria leads in volume but has clearly lost the capital crown.
A Mixed Continental Picture
Across Africa excluding South Africa, M&A value fell 10% to US$5.58 billion across 166 transactions. Energy and mining deals in Angola, Ghana and Equatorial Guinea accounted for US$1.21 billion, sustaining activity in natural resource sectors despite a complex geopolitical environment.
Why It Matters
Kenya's rise to the top of African M&A confirms Nairobi's growing role as the continent's financial centre of gravity. For Indian Ocean operators — Mauritius-based investors, Port-Louis financial centre funds, Réunion groups active in East Africa — this is a clear signal to review or strengthen strategic positioning. East Africa is no longer just an emerging growth zone: it is already the arena for the continent's most ambitious transactions.