Kenya is one of Africa’s most attractive corporate dealmaking destinations after mergers and acquisitions surged to $1.44 billion (Sh186.4 billion) in the first half of 2026.
This was powered by a series of high-value banking transactions with the value of Kenyan deals far exceeded Nigeria’s $105.8 million (Sh13.7 billion), despite Nigeria recording more transactions, underlining how a handful of large acquisitions helped propel Kenya to the top of the continent’s mergers and acquisition table.
According to DealMakers AFRICA, Kenya recorded 25 deals during the six months to June, compared with Nigeria’s 39 transactions.
The difference highlights a growing trend in African dealmaking, where fewer but larger and strategically significant transactions are increasingly accounting for a substantial share of total market value.
DealMakers AFRICA is a publication and research provider tracking mergers and acquisitions, private equity, and corporate finance activity across the African continent outside of South Africa.
Kenya’s performance came out of $2.23 billion (Sh288.7 billion) worth of disclosed deals tracked across the continent, placing the country at the top by deal value.
South Africa, meanwhile, recorded only three deals valued at $571.2 million (Sh74 billion), while Egypt reported 18 transactions worth $140.7 million (Sh18.2 billion).
The biggest driver of Kenya’s performance was the proposed acquisition by South Africa’s Nedbank of a 66 per cent stake in NCBA Group from shareholders in a transaction announced on January 21 and valued at $855 million (Sh110.7 billion).
The deal, which has received a green light from the Central Bank of Kenya, accounted for nearly 60 per cent of the total value of mergers and acquisitions recorded in Kenya during the six-month period.
Another major transaction was Absa Group’s acquisition from minority shareholders of up to an additional 16.5 per cent stake, equivalent to 895,989,600 shares, in Absa Kenya. The transaction was valued at $239 million, or about Sh30.9 billion.
The two banking deals demonstrate the increasing importance of the financial services sector in driving corporate consolidation in Kenya, as regional and international investors seek scale, market share and access to the country’s expanding consumer and business economy.
Across the wider continent, however, DealMakers AFRICA said mergers and acquisitions activity softened compared with the same period last year, as investors adopted a more cautious approach amid geopolitical uncertainty and a more measured global investment environment.
“Strategic investors continued to pursue long-term growth opportunities despite a more measured global investment environment, but geopolitical developments have heightened uncertainty and prompted buyers and investors to adopt a more cautious approach to transactions in the region,” the firm notes in its report.
The total value of M&A deals captured by DealMakers AFRICA in the first half of 2026, excluding South Africa, stood at $5.58 billion (Sh722.5 billion), representing a 10 per cent decline from a year earlier.
Deal volumes in the continent fell, with 166 transactions recorded during the period, approximately 13 per cent lower than the first half of 2025.
Despite the decline, the data points to continued investor appetite for high-quality African businesses, particularly those with scale, strong growth prospects and clear routes through financing and regulatory approvals.
By deal volumes, West Africa accounted for 55 transactions, or about one-third of all reported activity. East Africa followed with 39 deals, while North Africa recorded 34.
Nigeria, Kenya, Egypt and Morocco emerged as the leading drivers of transaction activity within their respective regions.
“Energy and mining remained among the continent’s biggest attractions for strategic and opportunistic investors,” said Ronisha Singh, head of transaction advisory for Middle East & Africa, Private Equity and Mergers & Acquisitions (PEMA) at Marsh.
Four major transactions in Angola and Ghana, alongside another in Equatorial Guinea, had a combined value of $1.21 billion (Sh156.7 billion).
Private equity also continued to play a significant role in African corporate transactions, accounting for 76 deals during the six-month period, although activity remained below previous levels as investors grappled with difficult exits and broader market uncertainty.
DealMakers AFRICA noted that Africa’s M&A market is increasingly rewarding well-prepared companies with strong investment propositions while exposing weaker deals earlier in the transaction process.
Businesses with scale, a credible equity story and manageable regulatory and financing risks are attracting serious investor interest, even as global economic and geopolitical uncertainty makes buyers more selective.
