Absa Bank Uganda has formally agreed to acquire the Wealth and Retail Banking business of Standard Chartered Bank Uganda, a landmark transaction reshaping Uganda's financial sector. The agreement, signed in Kampala on Friday, October 24, 2025, will see all of Standard Chartered's retail clients and staff in Uganda transfer to Absa, pending regulatory approvals.

The move is part of Standard Chartered's global strategy to streamline operations and exit less profitable ventures to focus on its more dominant Corporate, Commercial, and Institutional Banking (CCIB) divisions. The London-headquartered bank first announced its intention to explore a sale of its retail units in several African markets, including Uganda, on November 27, 2024. This strategy has already seen Standard Chartered sell its Tanzanian retail business to Access Bank in June 2025 and completely exit markets like Angola, Cameroon, and Zimbabwe.

Sanjay Rughani, CEO of Standard Chartered Uganda, confirmed the bank's commitment to its corporate clients in the country, stating the sale is a “pivotal moment in executing our global strategy, focusing on areas where we are most differentiated.” The bank will continue to service its multinational, institutional, and public-sector clients in Uganda.

Absa's Pan-African Ambition

For Absa Bank Uganda, a subsidiary of the South Africa-based Absa Group, the acquisition is a significant boost to its growth strategy in the region. The deal will substantially expand Absa's customer base and enhance its product offerings in retail and wealth management. Charles Russon, Absa Group Executive for Africa Regions, stated that the transaction “supports Absa's strategic Pan-African growth ambitions and further strengthens Absa's position in Uganda's financial services landscape.”

David Wandera, Managing Director of Absa Bank Uganda, described the acquisition as a “significant milestone in our journey to become a market leader in providing innovative, customer-centric financial solutions.” The move is expected to intensify competition within Uganda's banking sector, where approximately 25 banks are vying for market share.

Implications for Kenya and East Africa

While the transaction is centered in Uganda, it reflects a broader strategic realignment by international banks across Africa that holds relevance for Kenya. Kariuki Ngari, the CEO for Standard Chartered Kenya and Africa, who was present at the signing in Kampala, noted the sale aligns with the bank's strategy to “accelerate income growth and returns” by focusing on affluent and cross-border banking. This signals that Standard Chartered's focus in core markets like Kenya will likely sharpen on high-net-worth individuals and corporate clients, potentially reducing its emphasis on mass-market retail banking.

The trend of global banks divesting from retail operations in smaller African markets creates opportunities for aggressive regional players, like Absa and other Kenyan banks, to expand their footprint. This consolidation could lead to a more competitive banking environment across East Africa, driven by institutions with deep regional knowledge and a focus on retail and SME banking. Analysts suggest that the high operational costs and stiff competition from local banks and fintechs are making mass retail banking less attractive for global giants who are now prioritizing higher-margin corporate and investment banking.

The transition for Standard Chartered's Ugandan customers and employees is expected to be seamless, with both banks committing to a collaborative handover over the coming months. The completion of the deal is now contingent on approval from the Bank of Uganda, the Capital Markets Authority, and other relevant regulatory bodies. The financial terms of the deal were not disclosed.