NAIROBI, KENYA – Kenya has overtaken Nigeria to become Africa’s leading mergers and acquisitions market outside South Africa by disclosed deal value, after recording US$1.44 billion in transactions during the first half of 2026.
The shift puts Kenya at the centre of a changing African investment landscape. Nigeria recorded more transactions, but several large deals pushed Kenya far ahead in the value of capital committed.
Banking drove much of that performance. South Africa’s Nedbank agreed to acquire a 66% stake in NCBA Group in a transaction valued at about US$855 million.
Absa Group also moved to increase its interest in Absa Bank Kenya by up to 16.5%. That transaction carried a value of about US$239 million.
A further US$215 million investment in electric mobility company Spiro added to Kenya’s total. Together, the three transactions accounted for most of the country’s disclosed deal value.
The numbers show that Kenya’s rise did not come from a broad surge across every industry. Instead, a small group of major investments dramatically changed its position in Africa’s M&A market.
That concentration does not diminish their significance. Large investors are committing substantial capital to businesses that offer scale and access to one of East Africa’s most important markets.
Financial services have become particularly attractive as regional banking groups seek stronger positions in growing African economies. Nedbank’s move for NCBA demonstrates the scale of that interest.
Kenya also offers investors something beyond its domestic population. Nairobi has developed into an important regional corporate centre, giving businesses access to markets across East Africa.
Multinationals, technology companies, financial institutions and private equity investors have increasingly used Kenya as a base for regional operations. Its transport connections, financial sector and growing technology ecosystem strengthen that position.
The latest M&A figures also reveal a changing relationship between Kenya and Nigeria in Africa’s investment market. Nigeria remains one of the continent’s largest economies and continues to generate more individual transactions.
However, Kenya attracted considerably more disclosed deal value during the period. That suggests investors may increasingly favour large, established businesses that can provide regional growth alongside domestic opportunities.
Africa’s wider M&A environment remains challenging. Deal activity across the continent outside South Africa reached about US$5.58 billion during the first half of 2026, according to DealMakers AFRICA.
That represented a decline from the comparable period last year, while transaction volumes also weakened. Investors have therefore not abandoned African markets, but they appear more selective about where they deploy capital.
Companies with strong balance sheets, credible expansion strategies and manageable regulatory risks are better positioned to attract funding. That trend could benefit markets that offer investors a combination of scale, stability and regional access.
Kenya now faces the challenge of converting its M&A momentum into broader investment. Manufacturing, technology, infrastructure, energy and consumer industries could provide the next test.
The US$1.44 billion headline is impressive, but a handful of large transactions generated most of it. Sustained investment across more industries would provide stronger evidence of a structural shift.
Even so, Kenya’s rise sends an important signal about Africa’s changing investment map. Nigeria may continue to lead by transaction volume, but Kenya has demonstrated that major strategic deals can quickly shift where capital flows across the continent.
