- Kenyan healthcare investor Jayesh Saini has received competition approval to take control of ABC Bank.
- The proposed deal would move Saini beyond healthcare and insurance into commercial banking.
- ABC Bank operates 12 branches, but the acquisition price and size of the stake have not been disclosed.
- The takeover still requires approval from the Central Bank of Kenya.
The transaction would give Mr Saini sole control of ABC Bank, a small Kenyan lender with 12 branches and operations serving businesses, individuals and institutional clients.
The acquisition price and the exact shareholding Mr Saini plans to acquire have not been disclosed.
The deal would extend his business footprint beyond healthcare, where he is associated with Lifecare Hospitals, Bliss Healthcare and pharmaceutical and medical-services businesses operating in Kenya and other African markets.
Kenya’s Competition Authority approved the proposed acquisition after finding that it was unlikely to harm competition in the banking market, according to The Standard.
The transaction still requires approval from the Central Bank of Kenya, which must assess the proposed owner and the implications of the ownership change before the takeover can be completed.
ABC Bank operates 12 branches and serves retail, corporate and institutional customers in Kenya. [TortoisePath |Abacus]BI Africa
Mr Saini’s move into banking comes as Kenya prepares to raise the minimum capital required of commercial lenders, increasing pressure on smaller institutions to secure new investors, merge with rivals or sell controlling stakes.
The minimum core-capital requirement is being raised gradually from $7.7 million (KSh1 billion) to about $77 million (KSh10 billion) by 2032.
The first increase will take the requirement to approximately $23.2 million (KSh3 billion) by the end of 2025 and $38.7 million (KSh5 billion) by the end of 2026.
The changes are expected to accelerate consolidation in one of East Africa’s most competitive banking markets. Recent transactions include Nigeria’s Access Bank acquisitionof the National Bank of Kenya and South Africa’s Nedbank agreement to acquire a controlling stake in NCBA.
Kenya remains attractive to African financial institutions because of its large consumer market, advanced mobile-payment network and position as a commercial gateway to the East African Community.
The country’s banks generated approximately $2 billion in pretax profit in 2024, although smaller lenders continue to compete with dominant institutions such as Equity Group and KCB.
The acquisition could give Mr Saini an established banking platform to support his wider businesses and reach new customers. ABC Bank, meanwhile, could gain a new controlling investor with the capital needed to meet Kenya’s increasingly demanding banking requirements.
