The South African banking group Absa plans to invest up to 30.9 billion Kenyan shillings ($239 million) to increase its stake in Absa Bank Kenya from 68.5% to 85%, thus strengthening its exposure to one of the most dynamic banking markets in East Africa.
The offer involves the acquisition of up to 895.9 million shares at a price of 34.50 shillings per share ($0.27), representing a premium of about 20% compared to the 30-day weighted average price.
This operation, totaling 30.9 billion Kenyan shillings ($239 million), comes as major African banks accelerate their expansion in Kenya, seen as a gateway to East Africa. Earlier this year, Nedbank announced the acquisition of a majority stake in NCBA Group for 13.9 billion rand ($842 million).
Absa is also seeking to increase its exposure to a particularly profitable subsidiary. Absa Kenya posted a return on equity of 23% in 2025, compared to 14.9% for the group, and contributed to about 9% of its profits last year. According to RMB Morgan Stanley, the transaction could increase the group’s consolidated profits by about 2%.
The offer is subject to approval from the Kenyan Capital Markets Authority, while the Central Bank of Kenya and South African prudential authorities have already given their approval. Absa stated that it would maintain the listing of its subsidiary on the Nairobi Stock Exchange.
