The precipitation of NbC in austenite is an important mechanism for improving the strength of steel because NbC-precipitates are known to decrease the ferrite grain size during the subsequent phase transformations upon cooling. The effect of the interaction between niobium (Nb) in solid solution and NbC-precipitates on the austenite-to-ferrite phase-transformation kinetics is not entirely clear. We study a high-purity Fe-C-Mn-Nb alloy cooled at different rates. Different annealing times at 850°C were applied to create different number densities and sizes of the NbC-precipitates in order to study the effect of NbC precipitation on the transformation kinetics. The alloy that is used in this study has an atomic ratio of Nb:C=1.3:1. The fraction of ferrite is measured as a function of temperature during cooling by means of dilatometry. The ferrite grain size is measured by means of optical microscopy. The results are interpreted with thermodynamic and kinetic models.