South African banking group Absa Group has launched a US$238 million offer to increase its ownership in Absa Bank Kenya to 85 percent, strengthening its position in one of its most profitable African markets.
The proposed transaction would see Absa acquire up to 896 million ordinary shares from minority shareholders in the Kenyan subsidiary at 34.50 Kenyan shillings per share, equivalent to about US$0.27.
Absa currently owns around 68.5 percent of Absa Bank Kenya, which is listed on the Nairobi Securities Exchange. If fully accepted, the offer would increase the parent company’s stake by 16.5 percentage points.
“The Kenya market is strategically important to the Absa Group and remains at the centre of our East African growth ambitions,” said Charles Russon, Chief Executive for African Regions.
The bank said the move reflects confidence in Absa Bank Kenya’s management team, business strategy and long-term prospects.
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Absa also said the Kenyan subsidiary would remain listed after the transaction and that it plans to maintain the bank’s strategy, leadership, employees and daily operations.
The acquisition highlights the growing importance of East Africa in the expansion plans of South African financial institutions, as several international banks scale back operations on the continent.
Absa’s African operations, covering 12 countries including Kenya, Ghana and Botswana, generated 7.76 billion rand in profits in 2025, a 25 percent increase from the previous year, according to the group’s annual results.
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The division contributed about 31 percent of Absa Group’s overall earnings, with Kenya accounting for roughly 19 percent of regional profits, according to research from SBG Securities.
Banking analysts said the move reflects a wider trend among pan-African lenders to focus capital on high-performing markets where economic growth, infrastructure investment and trade expansion are creating new opportunities.
The transaction still requires approval from Kenya’s Capital Markets Authority Kenya before the offer process can formally begin.
The proposed buyout comes as Kenya works to attract more foreign investment following a period of economic pressure that affected public finances and currency stability.
Absa’s increased commitment to Kenya signals the group’s belief that the country will remain a key driver of banking growth in East Africa
