Kenya’s banking landscape was the main centre of merger and acquisition (M&A) activity for the second year running in 2020, according to data provided by Mergermarket. This reflected both the strength of the Kenyan economy and the ongoing challenges faced by local lenders, exacerbated in the past year by the impact of Covid-19.
The east African nation remains one of the healthiest economies in Africa, and one of a handful that escaped recession in 2020, with the International Monetary Fund forecasting a 4.7% growth in gross domestic product for 2021. Yet while banks remain largely resilient and well capitalised, their profitability has suffered significantly due to the pandemic, in line with trends around the world.
