African Banking Giants Zero In on Kenya as Capital Rules Spark Acquisition Rush

From Lagos to Cairo to Johannesburg, Africa’s banking titans are converging on Nairobi.

• •In just two years, Kenya has witnessed a surge in cross-border acquisition attempts, with Nigerian and Egyptian lenders already sealing deals and South African giants now circling.
• •The drivers are a mix of regulatory reforms, market potential, and Kenya’s role as a regional financial hub.
• •Expect increased deal activity through 2026 and beyond, especially as foreign banks race to secure first-mover advantages in a consolidating market.

In 2024, the Central Bank of Kenya announced phased increases in minimum capital requirements, rising from KSh 2 billion in 2025 to KSh 10 billion by 2029.

This policy, aimed at strengthening financial system resilience, has put pressure on undercapitalized banks and triggered a wave of merger and acquisition activity.

The country’s strategic position as a trade, fintech, and finance hub for East and Central Africa makes it a natural target. With just over 38 licensed banks and a growing middle class, Kenya offers scale for ambitious pan-African lenders looking to expand beyond home markets.

Confirmed Deals: Nigerian and Egyptian Banks Take the Lead

• •Access Bank (Nigeria) made headlines in 2024 when it struck a deal with KCB Group to acquire 100% of the National Bank of Kenya. The transaction, valued at approximately 1.25x book value, will give Access a ready branch network and regulatory green light to expand its footprint.
• •Commercial International Bank (Egypt) cemented its entry with a full acquisition of Mayfair CIB Bank, after initially taking a 51% stake in 2020. The move, finalized in early 2023, marked the first North African lender to gain full control of a Kenyan bank.
• •Moniepoint Inc. (Nigeria), known for its fintech-led banking services and Africa's newest unicorn, acquired Sumac Microfinance Bank in 2025, gaining regulatory approval to take a 78% stake. The acquisition signals a fintech-driven disruption in Kenya’s SME lending space.

Who's Circling: M&A Watchlist

• •Zenith Bank (Nigeria) is reportedly in advanced talks to acquire a mid-tier Kenyan bank, according to Ecofin and Business Insider Africa sources. While the target bank has not been officially named, speculation within Nairobi's financial circles points to a lender with less than KSh 50 billion in assets and a strong SME loan portfolio. The acquisition, which would mark Zenith's first footprint in East Africa, aligns with its stated strategy to scale operations across key African trade corridors.
• •Standard Bank Group (South Africa) is eyeing NCBA Group in a potential landmark transaction, as initially reported by Bloomberg. If completed, the merger between Stanbic Bank Kenya and NCBA would create Kenya’s third-largest lender by assets. Regional CEO Patrick Mweheire has previously hinted at the bank’s appetite for a larger presence in East Africa, stating in 2024, "We continue to evaluate opportunities for scale in markets where we believe long-term value exists." Rumors of Stanbic’s interest in NCBA had circulated as early as 2022, but talks reportedly intensified after Kenya's revised capital rules were announced.
• •FirstRand Group (South Africa) has publicly signaled plans to enter the Kenyan market, citing increased capital thresholds as an opportunity to buy into a struggling mid-tier bank. CEO Mary Vilakazi stated in August 2025, "We’d like to go to Kenya… [they] have increased capital requirements… hopefully we’ve got an opportunity there."

What This Means for Local Banks

With the Central Bank's capital ramp-up, many mid-sized lenders now face a choice: recapitalize, merge, or sell.

Foreign acquirers bring not just liquidity but broader product suites, digital platforms, and cross-border linkages.

While this spells opportunity for strategic partnerships, it also raises questions about ownership concentration and the future of local banking autonomy.

Regional Integration or Foreign Domination?

The trend reflects a maturing of Africa's financial markets, with homegrown giants like Access, CIB, and Standard Bank leading the continental integration wave.

Kenya, with its regional influence and regulatory clarity, has become the focal point.

The real test will be how local banks respond—through innovation, alliances, or defensive mergers. One thing is clear: Kenya's banking landscape is being redrawn, and Africa's powerhouses want in.