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NCBA Investment Bank Eyes Growth in East Africa
NCBA Investment Bank is navigating East Africa’s evolving financial landscape, where currency stability, falling interest rates, and rising domestic investor appetite are reshaping opportunities.
From capital raising and IPOs to mergers and acquisitions (M&As) and sustainable finance, the bank is positioning itself at the forefront of regional deal making in the 2025–26 financial year.
Speaking to CNBC Africa, Muathi Kilonzo, Managing Director of NCBA Investment Bank, outlined how the institution is adjusting its strategy to capture emerging opportunities and drive inclusive growth.
Market Recovery and Investor Trends
After a turbulent period of currency swings, East Africa’s markets are stabilizing. Kenya’s shilling has firmed, and interest rates on short-term government securities have fallen from the high teens to below 8%.
This shift has unleashed a wave of local investment, with domestic investors now driving activity on the Nairobi Securities Exchange (NSE).
“The stock market is growing, and activity is being led by domestic participants rather than foreign investors,” Kilonzo noted, adding that retail bond trading has also gained momentum thanks to new digital platforms introduced by the Central Bank of Kenya.
Sectors showing resilience include banking, renewable energy, consumer finance, and agriculture.
“We are seeing opportunities in geothermal, wind, and hydro projects, alongside growth in consumer finance and agribusiness,” he said.
NCBA Investment Bank Eyes Growth in East Africa
IPOs and Private Placements
Additionally, the expected listing of Kenya Pipeline Company (KPC) on the NSE this month could mark a turning point for the market.
Kilonzo described it as a “watershed moment,” similar to Safaricom’s listing years ago, capable of catalyzing new listings and boosting market liquidity.
“A rallying market needs a large, good quality business to come to the market. KPC could play that role, opening the door for private listings and follow-on IPOs,” he said.
With banks also seeking to raise equity capital to meet regulatory thresholds, NCBA https://ke.ncbagroup.com/mobile-internet-banking-registration/ expects both public and private placement activity to increase.
The corporate bond market, dormant for years, is also showing signs of revival as lower interest rates make it attractive for issuers.
Cross-Border Deals and Regional Expansion
NCBA is leveraging its regional footprint to facilitate cross-border M&A activity in fintech, agribusiness, and energy.
Kilonzo noted that capital continues to flow into Kenya from neighboring markets like Rwanda, Uganda, and Tanzania, while Kenyan companies are increasingly eyeing expansion into Ethiopia and the Democratic Republic of Congo.
“NCBA sits in the middle of this, connecting those with capital to those who need it, whether flows are coming into Kenya or moving outward,” he said.
Innovation, Technology, and ESG
Digital innovation remains a cornerstone of NCBA’s strategy. The bank is deploying technology in wealth management, client advisory, and deal origination, using AI tools to match investors with opportunities that suit their risk profiles and return expectations.
“With technology, we can reach millions of households through mobile platforms, making investing more accessible and user-friendly,” Kilonzo explained.
Sustainability is also central to NCBA’s approach. The bank is embedding environmental, social, and governance (ESG) principles into its advisory services and capital markets work, often in partnership with development finance institutions (DFIs).
“The private sector must step in to fund critical sectors like healthcare, education, agriculture, and renewable energy,” Kilonzo emphasized. “We are working with DFIs and commercial partners to structure solutions that de-risk investments while delivering impact for local communities.”
Outlook
As East Africa’s financial markets deepen, NCBA Investment Bank sees itself as a catalyst for industrial growth, regional integration, and sustainable investing.
In conclusion, with IPOs on the horizon, a revitalized bond market, and growing appetite for ESG-driven opportunities, Kilonzo believes the 2025–26 financial year will be pivotal.
“This is not just about NCBA,” he said. “It is about building a stronger financial ecosystem that supports investors, businesses, and communities across the region.”
Full interview can be watched from https://www.cnbcafrica.com/media/7758103660757/unpacking-ncba-banks-east-africa-strategy/
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