* Says targeting a mid-tier Kenyan bank
* To increase branches in Tanzania
By Duncan Miriri
NAIROBI, May 3 (Reuters) – South Africa’s FirstRand Bank
plans to acquire a mid-sized Kenyan bank when the
opportunity arises to boost its presence in the largest economy
in one of the fastest-growing regions on the continent, its
Africa head said.
Foreign lenders have been looking to set up operations in
Kenya, driven by a desire for a piece of the action in a market
where collective industry profits jumped 20.4 percent last year
to 89.3 billion shillings ($1.07 billion).
Jabu Khethe, chief executive for FirstRand Africa, said the
sector was very competitive, with 43 lenders, making it
difficult for a new entrant to adopt a greenfield model.
A law requiring banks to raise their minimum capital to 1
billion shillings from 250 million shillings by the end of this
year, would also throw up consolidation and acquisition
opportunities, Khethe said.
“We tend to come in the mid-tier type level. It is easy to
merge the cultures, people, systems, etc,” Khethe said at the
launch of the bank’s representative office in Nairobi late on
Wednesday.
“More importantly you still have some work to do in
capturing the market share. To buy a bank that is dominant
already is not always the best solution.”
Continued…
