FirstRand Intensifies Search for Kenyan Bank Acquisition

FirstRand, the parent company of First National Bank and Rand Merchant Bank, has renewed its efforts to acquire a Kenyan lender after 14 years of exploring the market. Mary Vilakazi, the bank's chief executive officer, stated that the group prefers to purchase a smaller bank at an appropriate price rather than overpay for one of Kenya's larger banks.

Although no specific targets have been identified, FirstRand is also considering opportunities beyond banking, including insurance and investment banking, to establish a broader presence in East Africa. FirstRand has been active in Kenya since 2012 when it opened a representative office in Nairobi to facilitate infrastructure and project-finance deals.

However, this office cannot accept deposits or operate as a full retail bank. The bank's previous attempts to acquire a mid-sized lender were hindered by high valuations, leading to years of limited engagement in the market.

In the previous year, Kenyan banks reported combined profits of KES 241.65 billion ($1.9 billion), reflecting a 16.3% increase.