Some of Africa’s biggest banks are pushing hard to win customers in East Africa. Kenya is at the centre of this contest. South African lender ABSA is among the major players pressing deeper into the region. The race for market share has grown more intense in 2025.
Kenya has the largest economy in East Africa. It also has one of the most active banking sectors on the continent. Banks from across Africa use Kenya as a base to reach customers in Uganda, Tanzania, and Rwanda. Nairobi, Kenya’s capital, is one of the main financial hubs on the continent.
East Africa has seen strong growth in mobile banking and digital payments over the past decade. Millions of people who had no bank account before now use mobile money services. They use these services to pay for goods and send money to family. Kenya’s M-Pesa is the best-known platform and is used by millions across the region. This growth has made East Africa far more attractive to banks looking to expand outside their home markets.
ABSA has been building its presence in Kenya through ABSA Bank Kenya. The business was formerly known as Barclays Bank of Kenya. The South African bank took control in 2018 after Barclays sold its African operations. Since then, ABSA has worked to grow its retail and business banking services in the country. The bank has also been upgrading its technology systems and expanding its branch network.
ABSA is not the only large African bank targeting East Africa. Standard Bank, through its regional arm Stanbic, has been active in the area for many years. Nigerian lender Access Bank has also been expanding into Kenya and other East African countries. The arrival of more players has pushed up competition and put pressure on fees and interest rates.
Kenya draws attention from banks for several reasons. Its middle class has been growing, and more people need loans, savings accounts, and business banking services. The country’s financial technology companies have shown what modern digital banking can look like in Africa. Regulators in Kenya are considered to be among the more consistent and transparent on the continent.
More competition between banks is generally good for customers. Banks are pushed to lower their fees and offer better services. This happens when rivals are fighting hard for the same customers. Small businesses may find it easier to get loans as lenders compete for their accounts. Individuals may also see cheaper transaction costs as the rivalry grows.
For South African banks such as ABSA, expanding in East Africa is part of a wider plan. South Africa’s own economy has grown slowly in recent years. This has pushed local banks to look for growth in faster-growing African markets. Kenya has a population of about 55 million people and a fast-growing economy. This makes it one of the most attractive banking markets on the continent.
More activity is expected in the East African banking market over the coming months. Several banks have said they plan to open new branches and launch new digital products in the region. Regulators in East Africa are also working on cross-border banking rules. This could make it easier for banks to grow across multiple countries with one licence.
ABSA operates in several African countries outside South Africa as part of its pan-African growth plan. The bank has said that East Africa remains one of its main areas of focus. Kenya has one of the busiest and most competitive banking sectors on the continent. Dozens of licensed commercial banks operate in the country, serving millions of customers.
Emma Collins is a business and financial journalist reporting on South Africa’s economy. She covers the Johannesburg Stock Exchange (JSE), rand movements, Reserve Bank policy, mining and resources, and the country’s emerging startup ecosystem. Emma’s reporting helps readers understand how economic decisions by government and corporations affect everyday South Africans. She has tracked major developments at Eskom, Transnet and the National Treasury.