Absa to raise Kenya unit stake via $238 million tender offer
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Absa Group said on Friday it plans to increase its stake in Absa Bank Kenya to as much as 85% through a tender offer worth about $238 million.
South African banks have been stepping up acquisitions in East Africa, filling a vacuum left by retreating European banks and riding a wave of increased continental trade and investments into energy and infrastructure.
Absa, which holds around 68.5% of Absa Bank Kenya, is offering 34.50 Kenyan shillings ($0.27) per share to buy up to roughly 896 million ordinary shares from minority investors. The transaction could lift its stake by up to 16.5%, it said in a statement.
"Kenya is a strategically important market for Absa Group and remains central to our East Africa growth ambitions," Charles Russon, group executive for Africa regions, said. He added the proposal reflected confidence in the bank's leadership, strategy and long-term growth prospects, as well as Absa's commitment to supporting Kenya's economy.
Absa, South Africa's third-biggest lender by assets, said it intends to maintain Absa Bank Kenya's listing on the Nairobi Securities Exchange after the transaction. The group added it does not plan to alter the bank's business strategy, management team, staffing levels or day-to-day operations.
Absa's Africa Regions business contributed 31% to group headline earnings in 2025. That same year, Kenya contributed about 19% of the profits in the Africa regions portfolio, SBG Securities wrote in a note to clients.
The tender offer is subject to approval by Kenya's Capital Markets Authority and will not begin until regulatory clearance is obtained.
($1 = 129.3000 Kenyan shillings)
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