GROWTH

KCB launches new subsidiary in Rwanda

KCB says this new subsidiary gives the Group the edge to deepen its strategy to scale regional presence.

In Summary

• Oigara said BPR  Bank PLC will support the Rwanda's economy by focusing efforts on inclusive growth, financial opportunities, money management and investments.

•KCB said this new subsidiary gives the Group a stronger edge in deepening its ongoing strategy to scale regional presence.

KCB Group PLC Chairman Andrew Wambari Kairu with Dr Édouard Ngirente, the Prime Minister of the Republic of Rwanda during the launch of BPR Bank Rwanda PLC On Wednesday in Kigali
NEW OPPORTUNITIES: KCB Group PLC Chairman Andrew Wambari Kairu with Dr Édouard Ngirente, the Prime Minister of the Republic of Rwanda during the launch of BPR Bank Rwanda PLC On Wednesday in Kigali
Image: KCB

KCB has launched a new subsidiary in Rwanda, BPR  Bank Rwanda  PLC following the merger of KCB Bank Rwanda and Banque Populaire du Rwanda (BPR).

This means the two banks will now operate as a single entity named bpr Bank Plc, with KCB Group as the majority shareholder.

KCB said this new subsidiary gives the Group a stronger edge in deepening its ongoing strategy to scale regional presence.

The lender CEO Joshua Oigara said BPR  Bank PLC will support the Rwanda's economy by focusing efforts on inclusive growth, equality, financial opportunities, money management and investment initiatives.

"We are delighted with the possibilities that lay ahead, as this integration has enabled us to buttress our leadership position, giving us a stronger edge to play a bigger role in driving the financial inclusion agenda in East Africa, while building a robust and financially sustainable organization," Oigara said during the launch on Wednesday.

Speaking while officiating the event, Rwanda Prime Minister Édouard Ngirente said, “We are excited to see this milestone come through. These two organizations have the right synergies to come together and succeed, especially in this market."

This launch comes after KCB's subsidiary recording success in 2021.

Equity's  subsidiary in Democratic Republic of Congo, EquityBCDC, the bank's second largest subsidiary recorded a 14.9 per cent return on average equity (ROAE) from 8.8 per cent previous year.

EquityBCDC contributed 47 per cent in asset increase at Sh419.8 billion against the groups overall of Sh1,304.9 billion.                                       

The subsidiary followed the acquisition of majority shareholding of Banque Commerciale du Congo (BCDC) by Equity Bank Congo in July 2020.

Equity currently has 337 branches in Kenya, Uganda, DRC, Tanzania, Rwanda and South Sudan.