South Africa’s businesses and institutional investors should view the state visit by Kenya’s number one citizen, William Ruto, to South Africa this week as a capital allocation opportunity rather than a mere diplomatic visit and tap into the vast prospects presented by East Africa’s anchor economy.This is according to Standard Bank’s head of Africa research, Jibran Qureishi, who argues that Kenya this year presents a sounder macroeconomic proposition than it did two years ago, with Kenyan authorities having regained credibility with the investment community.“Over 60 South African companies operate in Kenya, with investments in various sectors of the economy. This state visit should spur scaling of South African businesses operating in Kenya to hundreds,” Qureishi said.“South Africa and Kenya are not simply bilateral partners; they are both anchor democracies and anchor markets for Southern and East Africa. For companies building regional value chains, that matters.”(Dorothy Kgosi) Some of the South African companies with a significant presence in Kenya, East Africa’s economic powerhouse, include Vodacom, MTN, Old Mutual and Cliffe Dekker Hofmeyr.President Cyril Ramaphosa will on Thursday host Ruto at the Union Buildings in Pretoria. A high-level Kenya-South Africa business forum will also be held as the two countries seek to deepen their economic ties.“The strategic importance of the bilateral relations between the two countries underlines South Africa’s intentions to elevate the nature of the relationship to that of a strategic partnership,” the presidency said in a statement. “The business forum will focus on deepening economic co-operation, facilitating business partnerships and exploring strategies for unlocking the full potential of trade and investment between the two countries in mutually beneficial strategic sectors.”For South Africa’s banks, Kenya and the broader East Africa region present a compelling expansion proposition. “Kenya now offers a stable exchange rate, a functioning foreign exchange market with ample liquidity, record-high foreign exchange reserves at $13.2bn and progressively re-emerging capital markets, enabling the free entry and exit of capital,” Qureishi said.“Meanwhile, economic growth has remained resilient, with GDP expanding by 4.6% in 2025 and expectations of gradual recovery above 5% in the medium term.”For Standard Bank, Kenya, in which Africa’s largest bank by both assets and market value is underweight, the opportunities to expand are aplenty.The lender, armed with R3.6-trillion of assets, holds an unfamiliar market share in Kenya by its standards and a dominant position in markets it is present in. Based on the group’s record-breaking 2025 financial year results announced in March, Kenya accounts for just 3% of the group’s earnings. The lender is ranked number six in that market in the metrics of profit after tax, total assets and deposits.In comparison, the Sim Tshabalala led bank holds familiar territory in Kenya’s neighbouring countries. The lender in Uganda, for example, is ranked first in terms of revenue, total assets and profit after tax and deposits.The underweight position of the group has fuelled speculation that it is looking for acquisition opportunities in Kenya, backed by its unparalleled balance sheet. Standard Bank’s East Africa top brass have also descended on South Africa — led by Joshua Oigara, who took over as CEO of Stanbic in March.Oigara, previously CEO of Stanbic Bank Kenya, also serves as the Standard Bank regional CEO for East Africa, overseeing operations across five countries in the fast-growing region, which accounted for R4.7bn of Standard Bank’s earnings in 2025.Standard Bank’s Africa portfolio, which stretches across 20 countries outside its home market of South Africa, is a key earnings driver with the portfolio accounting for about 40% of the group’s profits.In the 2025 financial year, the portfolio overseen by Lungisa Fuzile reported R20bn in headline earnings with a return on equity of 25.9% and 18% of the group’s assets.