FirstRand Group, Africa’s biggest bank by market value, is positioning for entry into Kenya’s banking sector, viewing the country’s rising minimum capital requirements as a gateway for expansion.
Mary Vilakazi, the group’s CEO, told Bloomberg in a recent interview that the Johannesburg-based lender sees regulatory-driven consolidation as a market-opening opportunity.
“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.
FirstRand has maintained a representative office in Kenya since November 2011. As of August 2025, the lender’s market capitalisation stood at $24.8 billion (ZAR 437.09 billion).
The group’s portfolio spans banking, insurance, and investment products across eight African markets and three overseas — including India and the United Kingdom. Its subsidiaries include First National Bank, Rand Merchant Bank, WesBank, and Ashburton Investments, alongside stakes in RMB Morgan Stanley and RMB Private Equity.
The move would bring FirstRand into direct competition with Standard Bank Group, Africa’s largest lender by assets, which operates in Kenya through Stanbic Bank.
Kenya’s revised capital rules are expected to reshape its financial landscape. Data from the Central Bank of Kenya shows that by 2023, only 14 of the country’s 39 commercial banks would have met the new thresholds. The rest must boost capital through new investments, retained earnings, or mergers and acquisitions.
“These deals can achieve economies of scale, expand market share, and provide entry routes for foreign players seeking well-aligned business models or complementary customer bases,” said Nicasio Migwi, General Manager–Special Projects and Bank Economist at Equity Group, in a recent news article.
Migwi added that while local banks may try to acquire strategically to fend off multinational entrants, regulators could view foreign partnerships as a way to diversify market risk.
Beyond Kenya, FirstRand is also looking to scale its presence in Zambia and Ghana as part of a wider strategy to diversify revenues and strengthen its African footprint.
