South Africa’s FirstRand is hunting for a Kenyan bank to buy, joining a wave of South African lenders racing to grab a share of one of East Africa’s most profitable banking markets.
FirstRand Chief Executive Mary Vilakazi said the group has been scouting opportunities in Kenya for years but has yet to find a deal at the right price.
“There must be a willing seller at the right price for us to do any deal,” Vilakazi said. “What we will not do is overpay for any asset.” FirstRand currently runs only a representative office in Kenya, alongside full operations in Botswana, Lesotho, Mozambique, Namibia, Zambia, Eswatini and Ghana.
The comments came days after FirstRand posted results for the year to June 30, 2026, showing group profit fell for the first time in six years after a 547.8 million pound charge for a UK motor finance redress scandal. The group has classified its entire UK business, Aldermore Bank and MotoNovo Finance, as held for sale. Stripped of the UK charge, continuing operations across South Africa and the rest of the continent grew earnings 13 percent, with return on equity at 24.9 percent, and the group raised its dividend per share 16 percent.
A Regional Buying Spree
FirstRand is late to a race its rivals are already running. Absa Group has spent 2026 tightening its grip on Absa Bank Kenya, while Nedbank has moved to take control of NCBA Group outright.
| Acquirer | Target | Stake Change | Status |
|---|---|---|---|
| Absa Group | Absa Bank Kenya | 68.5% to roughly 72%, after a tender offer aimed at 85% drew limited uptake | Completed August 2026 |
| Nedbank Group | NCBA Group | Acquiring about 66% | In progress |
| Zenith Bank | Paramount Bank | Full acquisition | Completed |
Zenith Bank’s acquisition of Paramount Bank marked the Nigerian lender’s entry into Kenya, following other West African banks expanding east. NCBA, Nedbank’s target, serves more than 60 million customers across Kenya, Tanzania, Uganda and Rwanda through its digital lending platforms.
Why Kenya, Why Now
Vilakazi said FirstRand’s strategy is to enter “markets that offer structural system growth,” relying on organic growth backed by smaller bolt on acquisitions rather than one large purchase. Standard Bank’s chief executive has also visited Nairobi several times this year to meet Kenyan officials, though the bank has not named a target.
Absa’s Africa Regions business, which includes Kenya, contributed 31 percent of group earnings in 2025. But Absa’s own tender offer to lift its Kenyan stake to 85 percent drew tenders for only about a fifth of the shares on offer, and the bank has since confirmed Yusuf Omari as substantive Managing Director and CEO. Standard Chartered Bank Kenya has faced its own pension dispute with former staff.
For FirstRand, the message is patience over urgency. The opportunity in Kenya is real, Vilakazi indicated, but the group will wait for the right seller at the right price.
