(NAIROBI, KENYA) – Standard Bank Group aims to strengthen its position in East Africa through internal growth rather than acquisitions, even as South African rivals Absa Group and Nedbank Group complete major deals in Kenya.
Standard Bank Chief Executive Officer Sim Tshabalala said the bank plans to expand in the region by building its own operations rather than pursuing mergers and acquisitions. He spoke during an interview in Nairobi.
“Traditionally the way we have grown as a bank is that we enter markets by starting with corporate and investment banking and then developing our capabilities in business and commercial banking for the middle market and then for retail,” Tshabalala said.
“In 10 years, we want to have a universal bank in East Africa, and we are going to do that whether organically or inorganically, but organic is certainly the best way to do it,” he added.
The CEO said the regional market offers growth opportunities that Standard Bank targets to exploit.
“There is great interest in Kenya and in East Africa. As you know, our competitors, both South African and international, are here often, and that speaks to something special happening in Kenya and East Africa,” Tshabalala said.
“This is an economy that has been growing at about 5 percent since the early 2000s as a consequence of the fact that the economy is diversifying; it is a great logistics hub and entry point into the region, and third is that it forms part of an interesting crescent of that trade route in between Egypt, the Gulf States and the Indian Ocean.”
Tshabalala’s visit to Nairobi last week was his second in 2026. It comes after two major deals by Standard Bank’s South African rivals that have totalled KES122.8 billion ($952 million / £749 million).
Absa Group is set to increase its stake in Absa Bank Kenya from 68.5% to 72.0% in a KES6.53 billion ($50.6 million / £39.8 million) deal. This follows receipt of bids amounting to 189.4 million shares from 2,045 shareholders in its tender offer priced at KES34.50 ($0.27 / £0.21) per share, which runs from 30th June 2026 through 11th August 2026.
Nedbank secured Central Bank of Kenya approval for its KES116.3 billion ($902 million / £710 million) acquisition of a 66% stake in NCBA Group on 28th August 2026.
Amid the acquisition rush by South African banks in the Kenyan market, Tshabalala maintains that Standard Bank Group is prioritising organic growth in the region, suggesting that an acquisition is not on the near term horizon for the bank.