FirstRand Signals Intent to Acquire Kenyan Bank Amid Regional Consolidation

FirstRand, the South African banking group behind First National Bank and Rand Merchant Bank, said it is stepping up its search for a Kenyan lender. Chief executive Mary Vilakazi indicated the group would rather purchase a smaller bank at the right price and grow it than pay a premium for one of Kenya’s largest lenders.

The group has been monitoring Kenya’s banking sector for roughly 14 years. It opened a representative office in Nairobi in 2012, operated mainly through RMB to arrange infrastructure and project‑finance deals. The office cannot accept deposits or run a full‑service retail bank.

Regulatory backdrop

Kenyan banks reported combined profits of KES 241.65 billion ($1.9 billion) in the last fiscal year, a 16.3% increase. Smaller lenders face a regulatory requirement to build at least KES 10 billion ($77 million) in capital by 2032, potentially creating more willing sellers.

Acquiring a mid‑size lender would give FirstRand a local banking licence, deposit base and customer relationships, allowing it to introduce FNB’s retail products and RMB’s corporate services over time.

The move comes as other South African banks expand in Kenya; Nedbank recently completed a 66% acquisition of NCBA, while Standard Bank already operates through Stanbic and is seeking further scale.

FirstRand has not identified a specific target and continues to evaluate opportunities.