Joshua Oigara stepped down from the role of CEO at Stanbic Kenya and South Sudan at the end of February to become regional chief executive for East Africa at Standard Bank Group—the parent company of Stanbic.
He spoke to Business Daily about the opportunities in the region, potential acquisitions, the switch to new lending models, and the increasing place of artificial intelligence (AI) in the banking sector.
It has been more than 15 years since a Kenyan last oversaw Standard Bank’s East Africa operations. As you settle into this regional role, what are your priorities?
First is the regional logistics and trade corridor. About 40 percent of our trade flows into the region, which tells you how significant intra-regional connectivity is. That brings in major infrastructure investments like roads, ports, airports, rail, electricity transmission lines, and data centres. There is also strong momentum in technology and digital innovation.
We are also seeing growing export activity across commodities like coffee and tea into markets such as Egypt, as well as products like avocados and macadamia. This means agriculture is an area with clear expansion potential.
Then there are extractives. Mining is already a major sector in Uganda and Tanzania, and Kenya also wants to play big in this area. Tanzania’s gas reserves represent a significant investment opportunity for us as a region.
Beyond what I have mentioned, you also have tourism, financial services, insurance, and telecommunication, all with strong growth potential. The reality is, there isn’t a single sector without upside potential.
To deliver on that, Standard Bank would likely need to scale further. Are regional acquisitions still on the table, and how has the timeline shifted from earlier expectations?
Let me clarify how we think about growth. There are three core levers: organic growth, inorganic growth, and partnerships.
Organic growth is about scaling the franchise we already have. That accounts for the majority of our focus. If you look at last year, our balance sheet grew by about 19 percent, which is a dramatic shift compared to the industry average.
On inorganic growth, we will pursue acquisitions where there is a clear strategic fit, alignment with our culture, and the right valuation. This is not something you can put a fixed timeline on. It is not a time-fenced issue, but we are always actively on the lookout in the market.
East Africa, and Kenya in particular, is a very dynamic space right now. We have seen significant activity across sectors, from breweries to telecommunications, media, and banking. We just haven’t gotten a person who fits our profile and our strategy.
Stanbic is currently using both the Kenya Shilling Overnight Interbank Average (Kesonia) and the Central Bank Rate (CBR) to price loans. How do you determine which clients are better suited to each benchmark?
A lot of this ultimately comes down to the clients’ choice. Clients are at the centre of this decision. You will see a lot of communication around Kesonia. They want to understand what Kesonia means, how it works, and how it impacts them.
From experience in other markets, like the UK, where they have Sonia (Sterling Overnight Index Average), we have seen that many consumer banking clients tend to stick with the familiar benchmark, in our case, CBR, because it is more predictable and easier to understand.
Larger clients with complex structures, who were already on Treasury bill-based pricing, have tended to adopt Kesonia. I believe we will continue to have these two rates, which align with the Central Bank’s recommendation.
Stanbic has deployed over 21 Artificial Intelligence (AI) bots. What impact do you see this having on the business?
My view has always been that repetitive processes can be enhanced with tech, analytics, and AI. Take credit scoring models, for example. How do I determine if someone is a good borrower? I could sit with you, assess it manually, or use a model that leverages tools, data, and algorithms.
For fraud detection, AI helps identify patterns and potential fraudsters efficiently. In payment processing, AI can translate checks into payment solutions seamlessly, improving the client experience.
For customer interactions, AI can identify a client by voice or respond to routine queries like account balances. These engines empower our staff to focus on higher-value work, supporting clients and improving service levels.
Interestingly, AI hasn’t reduced jobs. It has created new ones. We need more engineers to code, more people to profile clients, and more specialists to manage these systems. In the interim, employees with AI knowledge are far more valuable.
A perspective that keeps coming up is that if you have one candidate with 10 years of human experience and another with just two years of human experience but strong AI expertise, the latter should be looked at as more experienced. How does that change your human resource approach?
We haven’t yet seen a two-year graduate with AI skills who matches the depth and seniority that comes with 10 years of experience. Longevity in experience matters. Modelling and judgment come from doing more work over time.
AI can help scale your capabilities, but it doesn’t replace the need for experience. Take a young banker who is a teller and can’t balance a cash box. They can’t suddenly become a branch manager. There are operational responsibilities, client experience, reporting, and sales engagements that require time and exposure.
We need more managers and roles focused on coaching young employees while integrating AI. For example, AI can run credit scoring models, but you still need engineers and analysts who understand the underlying code and logic. If you just take the AI output without understanding it, you risk serious mistakes.
Earlier last year, when you announced the full-year numbers for 2024, the loan book had shrunk, partly on reduced borrowing appetite. Now, it seems that trend has reversed. What drove this rebound?
First, we have strengthened the capacity of our teams, particularly in corporate and investment banking, to regain the market share we had lost to other banks. The industry grew at about six percent in credit expansion, but we’re growing at 18 percent.
We are taking a share in key sectors. Public sector lending is a big part of this. We are now a major player in government-to-government oil transactions. We are also involved in large infrastructure projects.
We are also increasingly getting involved in advisory and structuring of complex transactions. This year, we are targeting credit growth between 14–16 percent in 2026.
Abraham Ongege is stepping into the role of CEO at Stanbic Bank at almost the same age you did in your previous assignment [at KCB Group]. What lessons do you hope to pass on to him?
This is a difficult question. One thing I have learned, reflecting on my own career, is the importance of knowledge. With proper preparation, strong support from the board, and good relationships with clients, anyone can build an organisation with great strengths.
Abraham has a long and distinguished career with Standard Bank, having trained and worked across multiple countries, including Kenya, South Africa, and Uganda. He’s more than capable of holding the fort while we await the regulatory clearance.
