Africa’s biggest bank eyes acquisitions as it seeks Kenya’s banking crown by 2030

South Africa’s Standard Bank is targeting the top spot in Kenya’s banking sector by 2030, betting on organic growth and potential acquisitions to expand its presence in East Africa’s largest economy.

The lender, which operates in Kenya through Stanbic Bank, currently ranks sixth by market share but views the country as the key to its broader ambition of becoming the region’s largest banking group.

“If we become the largest bank in Kenya, we become the largest bank in East Africa,” Joshua Oigara, Standard Bank’s chief executive for East Africa, told Semafor, citing Kenya’s scale, payment flows and corporate sector as critical growth drivers.

The target is likely to intensify competition in the country’s banking industry, where KCB Group, Equity Group and Co-operative Bank dominate the market. KCB remains the country’s largest lender, with assets exceeding KSh2 trillion ($15 billion).

Oigara said acquisitions remain on the table as the bank seeks to accelerate growth, particularly as tighter capital requirements place pressure on smaller lenders. “Where there is strategic alignment and cultural fit, acquisitions can be considered,” he said, without disclosing potential targets.

Standard Bank’s expansion plans come as Kenya’s banking sector emerges as one of Africa’s strongest-performing markets. Last year, leading lenders including KCB Group, Equity Group, NCBA and Co-operative Bank grew combined profits by 28.9 percent, the strongest performance among Africa’s major banking markets.

The growth outpaced South Africa’s largest banks — Standard Bank, Absa, Nedbank and Capitec — which increased earnings by 14.9 percent, supported by resilient consumer spending, digital banking growth and relatively stable monetary conditions.

Morocco’s biggest lenders expanded profits by 13.9 percent, while Egypt’s leading banks posted earnings growth of 4.4 percent, benefiting from balance-sheet expansion and elevated interest rates despite currency pressures. Nigeria’s top lenders, meanwhile, saw profits decline by 16.4 percent as rising impairment charges and the fading impact of gains linked to macroeconomic distortions weighed on earnings.

The strong profitability of Kenyan lenders has reinforced the country’s appeal as a strategic growth market for African banking groups seeking expansion beyond their home markets.

The continent’s biggest lender by assets is counting on expanding regional trade, infrastructure financing opportunities and digital partnerships to strengthen its position in Kenya and across East Africa.

Kenya is undertaking an estimated $45 billion infrastructure investment programme spanning ports, railways, airports and industrial zones, creating significant demand for financing and advisory services.

Standard Bank also expects to leverage its relationship with Industrial and Commercial Bank of China (ICBC), one of its largest shareholders, to support major projects. Oigara described Kenya as one of China’s most active commercial hubs in Africa outside South Africa.

The expansion reflects a broader race among African lenders to capture growth in East Africa. Banks including FirstRand, Absa Group, Zenith and Nedbank are increasing their focus on the region as growth opportunities become harder to find in some home markets, while the retreat of some European lenders has opened additional space for regional players.

With mobile money platform M-Pesa driving financial inclusion and digital banking adoption, Kenya remains one of Africa’s most attractive banking markets and a strategic gateway to the wider East African region.