BIGGER FOOTPRINT

KCB Group acquires two banks in Tanzania, Rwanda

The twin acquisitions are part of KCB Group’s strategy to achieve regional impact.

In Summary

• Transactions follow the offer by KCB Group last year. Having received shareholder approval, they are subject to receipt of final regulatory approval.

•“Acquisitions will reinforce our leadership position and help us play a bigger role in in driving East Africa financial inclusion," KCB chairman Andrew Kairu said.

KCB CEO Joshua Oigara.
THE BOSS: KCB CEO Joshua Oigara.
Image: FILE

KCB Group has fully acquired Banque Populaire Du Rwanda and African Banking Corporation Tanzania Limited.

The twin acquisitions of BPR and BancABC are part of KCB Group’s strategy to achieve regional impact. They will expand the brand’s footprint and reinforce existing market capabilities.

The transactions follow the offer made by KCB Group late last year. Having received shareholder approval, they are subject to final regulatory approval.

“These acquisitions will reinforce the Group’s leadership position and give us a stronger edge to play a bigger role in driving the financial inclusion agenda in the East African region," KCB Group chairman Andrew Kairu said at the bank's 50th general meeting on Friday last week.

"At the same time we build a robust and financially sustainable and profitable organisation for the shareholder.

The acquisition is likely to scale up KCB's assets to almost Sh1 trillion, a move likely to make second lender in the region to hit over Sh1 trillion in the region after Equity Group.

Earlier on, shareholders approved a first and final dividend of Sh1.00 per share. The dividend worth Sh3.2 billion shall be paid on or before June 26.

“The pandemic tested our resilience, but the group maintained the balance sheet growth momentum it has built for over a decade. This growth was recorded across all the businesses and translated to all the subsidiaries returning a profit for the year,”KCB Group CEO Joshua Oigara said.

(Edited by V. Graham)