KCB Group, Kenya’s largest lender by assets, is preparing to enter Ethiopia’s banking sector before the end of 2026 as part of its regional expansion strategy. The bank has already shortlisted potential acquisition targets and identified an institution it believes offers the right cultural and strategic fit for market entry. Speaking to NTV Kenya, Finance Director Lawrence Kimathi said the group has made "good progress" in narrowing down its options. He acknowledged that the regulatory framework presents challenges, particularly the rule that caps foreign ownership in banks at 49pc without regulatory approval. Kimathi noted that the lender has not yet formally approached Ethiopian regulators but emphasised that the law allows flexibility if authorities consider majority control beneficial for the market. He added that the group has drawn lessons from the experience of Safaricom, whose entry into Ethiopia faced early operational hurdles. KCB’s planned entry highlights the country’s growing appeal as a frontier market for regional lenders. The bank expects its Ethiopian expansion to complement its presence across East Africa and support long-term earnings growth.

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