Kenya is fast emerging as a regional expansion hub for Africa’s biggest banks, as lenders across the continent position themselves to tap into East Africa’s rapidly growing but underbanked markets. New capital requirements are pushing smaller Kenyan banks to seek partners, creating a wave of potential mergers and acquisitions that is attracting major players, particularly from South Africa. The shift also comes as several global banks scale back their presence in Africa, leaving room for regional institutions to step in. With a combined market of nearly 500 million people, growth projections of 6.1% this year, and banking returns of around 23%, nearly double the global average, the region offers compelling opportunities. For many lenders seeking growth beyond slower domestic markets, Kenya is increasingly viewed as the gateway to East Africa’s next phase of financial expansion.
Bloomberg
