Absa Group said on Friday it plans to increase its stake in Absa Bank Kenya to up to 85% through a tender offer worth about $238 million.

South African banks have been stepping up acquisitions in East Africa, filling a vacuum left by retreating European banks and riding a wave of increased continental trade and investment in energy and infrastructure.

Absa, which holds around 68.5% of Absa Bank Kenya, is offering ​34.50 Kenyan shillings ($0.27) per share to buy up to roughly 896 million ordinary shares from minority investors. The transaction could lift its stake by up to 16.5%, it ​said in a statement.

"Kenya is a strategically important market for Absa ​Group and remains central to our East Africa growth ambitions," Charles Russon, group executive ‌for Africa ⁠regions, said.

He added that the proposal reflected confidence in the bank's leadership, strategy and long-term growth prospects, as well as Absa's commitment to supporting Kenya's economy.

Absa, South Africa's third-largest lender by assets, said it intends to maintain Absa Bank Kenya's listing on the Nairobi Securities Exchange following the transaction.

The group added that it does not plan to alter the bank's business strategy, management team, staffing levels, or day-to-day operations.

Absa's ​Africa Regions ⁠business contributed 31% to group headline earnings in 2025. That same year, Kenya contributed about 19% of the profits in the Africa region's portfolio, SBG ⁠Securities ​wrote in a note to clients.

The tender offer is subject to approval by Kenya's Capital Markets Authority and will not commence until regulatory clearance is obtained.