Standard Bank boss Sim Tshabalala is this week on a charm offensive in Kenya, a market in which South African lenders are falling over themselves to win market share, with the country seen as the anchor economy in the fast-growing East Africa region.
Tshabalala, who has held the role of group CEO for more than a decade, met with the Kenya’s national treasury team led by cabinet secretary for the treasury and economic planning, John Mbadi.
Tshabalala’s entourage also met with the governor of the Central Bank of Kenya, one of the country’s largest companies and the lender’s client, Safaricom.
Standard Bank, Africa’s largest bank by assets is underweight in Kenya, and the group is said to be scouring the market for potential acquisitions.
In the 2024 full-year results, Standard Bank held seventh position in the Kenyan market on revenue, sixth on assets and deposits and sixth on profit before tax.
Read: SA banks eye Standard Chartered Botswana sale
The group now derives more than 40% of its earnings outside South Africa. It raked in R4.2bn in earnings from East Africa, R8.7bn from South and Central Africa and R5.1bn from West Africa.
Tshabalala said East Africa is becoming an increasingly prominent focal point due to its strategic geography, dynamic economies and growing role in regional integration, stressing Standard Bank is focused on growing East Africa and deepening and scaling its existing businesses.
“Anchored by fast‑growing markets such as Kenya, Tanzania, Ethiopia, Uganda and Rwanda, the region has become a hub for infrastructure investment, innovation and cross‑border trade,” Tshabalala said.
“Its access to the Indian Ocean positions East Africa as a critical link between Africa and the Middle East, South Asia and Indo‑Pacific economies, amplifying its relevance in emerging global supply chains.
“East Africa’s human capital and hard and soft infrastructure make it very well placed to be a global hub for advanced IT investment and innovation — a view that is strongly reinforced by Standard Bank’s ongoing interactions with our clients and with policymakers in the region.”
Nedbank last week moved to buy a controlling stake in Kenya-based NCBA, a lender Standard Bank is said to have been courting too, for nearly R14bn.
Read: EDITORIAL: East Africa beckons as lessons temper a big banking gamble
Nedbank, which relies on South Africa for 80% of its earnings, is looking to spread its wings to the fast-growing East Africa region after a disastrous investment in West Africa that ended in a costly withdrawal.
Absa is also looking to strengthen its position in East Africa, having recently snapped up the wealth and retail banking businesses of Standard Chartered in Uganda.
Tshabalala pointed to the integration of East Africa as a major investment attraction.
“Ambitious infrastructure corridors — from ports like Mombasa and Dar es Salaam to transport links into the interior — are enhancing connectivity and attracting diverse global partners,” he said.
At the same time, the East African Community’s expanding membership and deepening integration are strengthening the region’s economic dynamism and collective influence.
“As Africa’s geopolitical weight rises, East Africa’s combination of strategic location and rapid growth is making it one of the continent’s most consequential subregions.”
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