NAIROBI, Kenya — Absa Group Limited has announced plans to increase its shareholding in Absa Bank Kenya Plc from 68.5 per cent to 85 per cent through a tender offer valued at approximately Sh30.9 billion.
The South Africa-based banking group said it intends to acquire up to 895.99 million additional ordinary shares in Absa Bank Kenya at a price of Sh34.50 per share.
The offer represents an 18.1 per cent premium to the bank’s volume-weighted average share price at the close of trading on June 17, 2026.
According to the public announcement issued under the Capital Markets (Take-overs and Mergers) Regulations, 2002, Absa Group currently holds 3.72 billion shares in Absa Bank Kenya, equivalent to 68.5 per cent of the lender’s issued share capital.
If the tender offer is fully subscribed, the group will increase its holdings to about 4.62 billion shares, representing 85 per cent ownership.
The proposed acquisition is subject to approval by the Capital Markets Authority (CMA). Absa Group has simultaneously applied for an exemption from the requirement to make a mandatory takeover offer, arguing that the transaction is a strategic investment intended to deepen its participation in the Kenyan banking market while maintaining the bank’s public listing on the Nairobi Securities Exchange (NSE).
The banking giant said Kenya remains a key market within its African growth strategy and described East Africa as a critical pillar of its long-term expansion plans. The group noted that Kenya, Tanzania, and Uganda are expected to record strong economic growth in the coming years, supported by infrastructure investment and expanding regional trade.
“Absa Group’s strategy is to deepen its presence in high-potential markets in Africa, improve returns through scale and efficiency, and enhance regional connectivity,” the company said in the announcement.
The offer price of Sh34.50 per share also represents premiums of 20.0 per cent, 18.9 per cent, and 22.8 per cent to the 30-day, 90-day, and 180-day volume-weighted average share prices, respectively, up to June 17, 2026.
Absa Group indicated that the tender offer period is expected to run for 30 business days, opening on June 30 and closing on August 11, 2026, subject to regulatory approvals. Only shareholders whose shares are free from liens, pledges, or other encumbrances will be eligible to participate.
The Central Bank of Kenya and South Africa’s Prudential Authority have already granted preliminary approvals for the proposed increase in shareholding.
