NCBA Bank is going through a period that has attracted growing attention from customers, investors and industry observers, despite continuing to post strong profits.
The lender, which was formed after the merger of Commercial Bank of Africa and NIC Group in 2019, remains one of Kenya’s largest financial institutions. However, recent developments have raised questions about its future direction and ability to maintain its position in an increasingly competitive banking sector.
For many years, NCBA established itself as a leading player through vehicle financing, digital lending solutions and an extensive customer network across East Africa.
The bank was widely viewed as one of the strongest financial institutions in the region and competed closely with some of Kenya’s biggest lenders. Its growth strategy helped it build a large asset base and attract millions of customers.
However, competition within the banking sector has intensified. Recent financial reports showed that I&M Group surpassed NCBA in total assets during 2026, marking a significant shift in the industry. The development attracted attention because NCBA had previously maintained a strong lead over several competitors.
The gap in loan book size has also narrowed considerably, suggesting that rivals are growing at a faster pace.
Although NCBA continues to report billions of shillings in profits, some competitors have recorded stronger growth rates. This has led to discussions about whether the bank is doing enough to maintain its market position.
Customer deposits, which are often viewed as a measure of confidence in a financial institution, also declined during parts of 2025, adding to concerns among observers.
Apart from financial performance, the bank has faced scrutiny over several fraud-related cases. One of the most notable involved allegations that an employee stole more than Sh52 million from customer accounts.
The matter drew public attention after claims emerged that transactions allegedly continued even after the employee had been suspended.
Such incidents often raise concerns about internal controls and the effectiveness of systems designed to protect customer funds.
Other reported cases involving dormant accounts, Fuliza-related fraud and alleged misuse of system access by contractors have further increased public interest in the bank’s operations.
While NCBA has maintained that these incidents involved individuals acting outside the law rather than institutional failures, customers naturally expect strong safeguards to detect and prevent suspicious activities.
The bank has also faced criticism regarding customer data protection. Decisions by the Office of the Data Protection Commissioner found NCBA liable in separate cases involving the handling of customer information.
In one instance, personal data was reportedly shared with unauthorized parties, while another case involved transaction details being repeatedly sent to the wrong email address despite efforts to notify the bank.
Trust remains one of the most important factors in banking. Customers rely on financial institutions to safeguard their money, personal information and financial records.
When fraud cases and data protection concerns emerge, they can affect public confidence even when a bank remains financially stable.
NCBA’s asset financing business, particularly vehicle loans, has also attracted complaints from some customers over the years.
Disputes related to loan terms and vehicle repossessions have occasionally generated negative publicity. While such disagreements are common across the banking industry, they add to the challenges facing the lender.
Adding another layer of uncertainty is the planned transaction that will see South Africa’s Nedbank take control of the institution.
Some analysts view the move as a strategic decision aimed at strengthening the bank’s future growth. Others see it as a major shift for a lender that was once promoted as a leading Kenyan banking success story.
Despite these challenges, NCBA remains a major force in the financial sector and continues to generate significant profits. The real test for the bank will be whether it can address customer concerns, strengthen confidence and keep pace with competitors in a rapidly changing banking environment.
The next few years are likely to play a crucial role in determining whether the bank can regain momentum or continue facing increasing pressure from both the market and public scrutiny.
