Is Africa’s Biggest Bank Preparing to Enter Kenya?
FirstRand Group, Africa’s biggest bank by market value, is considering a deeper entry into Kenya’s financial sector as regulatory changes open new opportunities.
The Johannesburg-based lender, valued at about $24.8 billion (ZAR 437 billion) as of August 2025, already operates a representative office in Nairobi and is now exploring ways to establish a full-scale presence.
Mary Vilakazi, the FirstRand Group CEO, told Bloomberg that Kenya’s new banking rules may create an entry point.
“They have increased capital requirements significantly, and not even because of Basel III, but just because that’s what you can do when you want to drive consolidation, so hopefully we’ve got an opportunity there,” she said.
Kenya’s Central Bank raised the minimum capital banks must hold nearly tenfold, from about $7 million to $77 million by 2029. The new threshold puts pressure on 12 of Kenya’s 39 banks, which may be forced to merge, seek new investors, or shut down.
At the same time, after a decade-long licensing freeze, the Central Bank is allowing new banks to enter, creating a pathway for large regional players such as FirstRand.
Kenya’s banking market offers unique potential. Over 90% of adults use services like M-PESA or Airtel Money, making it one of the most digitized financial ecosystems in Africa.
Alongside rising smartphone penetration and tighter rules for digital lenders, the country presents opportunities for established banks that can blend traditional banking with technology-driven services.
Industry analysts note that FirstRand Group Kenya could be established either by acquiring a smaller struggling bank for faster entry, or by building a new institution from scratch.
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FirstRand Group expansion across Africa has typically relied on its four main operating units. Its primary subsidiaries, First National Bank (FNB), Rand Merchant Bank (RMB), WesBank, and Ashburton Investments, provide services ranging from retail and commercial banking to investment banking, vehicle financing, and wealth management.
FirstRand Group’s largest subsidiary, FNB, anchors its retail operations and has a strong market presence in Namibia and Botswana. RMB has been key in financing trade and infrastructure projects in markets such as Ghana and Zambia.
In Africa, FirstRand operates in Botswana, Namibia, Zambia, Ghana, Mozambique, Eswatini, Lesotho, and Nigeria. While regulatory challenges have kept the group cautious in Nigeria, its footprint elsewhere has expanded steadily, combining retail banking through FNB with corporate and investment banking via RMB.
Internationally, FirstRand operates in the UK, India, and South Africa. In London, RMB focuses on corporate and investment banking, while WesBank’s MotoNovo Finance specializes in vehicle lending. In India, RMB offers investment banking services, and Ashburton Investments drives the group’s wealth management strategy across markets.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
