Standard Bank’s Stanlib eyes growth in Kenya and Uganda, aiming to tap East Africa’s asset management potential and serve rising middle-class investors.
Africa’s Biggest Bank Makes a Strategic Pivot
Africa’s largest lender by assets is expanding in Nairobi and Kampala—and it’s not just about banking anymore.
Standard Bank Group Ltd., the Johannesburg-based financial giant with over $170 billion in assets, is turning its focus to East Africa. Its goal: dominate not only in loans and deposits but also in the fast-growing field of asset management.
At the center of this strategy is Stanlib, the group’s investment arm. Stanlib is targeting East Africa’s rising middle class and growing infrastructure projects as prime opportunities for long-term growth.
“East Africa’s long-term potential is enormous,” says Derrick Msibi, CEO of Stanlib Asset Management Pty Ltd. “We’ve laid the foundation in Kenya and Uganda. Now we’re ready to compete seriously.”
From Quiet Entry to Active Expansion
Stanlib entered Kenya in 2023 and Uganda in 2024 with lean teams and a learning-first approach.
“We didn’t want to make a big splash and fall short,” Msibi said in a May 3 interview. “We focused on understanding the local markets and earning trust.”
Now, Stanlib is preparing to scale up. In Kenya, it will launch more investment products for pension funds, insurance firms, and retail savers seeking alternatives to traditional banking.
In Uganda, the firm is pursuing licenses to offer cross-border products tied to the Johannesburg and Nairobi stock exchanges.
“We’re building an African asset manager, not just a South African one,” Msibi explained. “You don’t copy-paste models. You localize with global quality.”
The Numbers Driving the Strategy
This East African expansion is part of Standard Bank’s wider shift away from overdependence on South Africa.
Stanlib currently manages R600 billion ($31 billion) in assets continent-wide. But in Kenya and Uganda, assets under management (AUM) remain under $300 million, far below market leaders like ICEA Lion, Britam, or Sanlam.
“We’re small enough to move quickly, big enough to be trusted,” said Msibi. “We’re not chasing size. We’re building respect.”
Riding Africa’s Asset Management Wave
Stanlib’s move comes as global investors take interest in Africa’s untapped savings potential.
Improved pension coverage, increased financial literacy, and mobile investing apps are helping more people access investment platforms.
Standard Bank is leveraging its retail banking network to distribute Stanlib’s investment products to a broad client base.
“In five years, we want East Africa to contribute at least 15% of Stanlib’s AUM,” Msibi noted.
Challenges—and Opportunity
Barriers remain. East Africa’s asset management market faces currency risk, regulatory fragmentation, and low public awareness.
For instance, Kenya’s mutual funds account for less than 2% of GDP, compared to over 100% in South Africa, per the CMA Kenya.
Still, Stanlib remains optimistic.
“This is a long game,” Msibi said. “You don’t build a powerhouse overnight. But this is where the future is.”
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