This archive report was first published on 10 May 2021.
Kenyan Banking Giant KCB Expands Regional Presence ¶
On May 11, 2021, KCB Group announced plans to spend Sh6 billion to acquire two banks in Rwanda and Tanzania from London-listed Atlas Mara limited.
The Nairobi Securities Exchange-listed firm had initially estimated the cost of acquiring a 62 percent stake in Banque Populaire du Rwanda Plc (BPR) and a 100 percent ownership in African Banking Corporation Tanzania Limited at $40 million (Sh4.2 billion).
However, after KCB sought to make a full buyout of the Rwandan bank by making an offer to its minority shareholders who hold a combined 38 percent stake, the estimated cost increased to $56.9 million (Sh6 billion).
Atlas Mara is selling its African banks to KCB and other lenders to raise funds to pay its creditors, some of whom have launched liquidation proceedings against the multinational.
According to KCB, the acquisitions reflect its strategy of expanding its operations in the regional market, where uptake of financial services is lower than in Kenya, signaling future growth opportunities.
The bank currently has banking units in Kenya, Tanzania, Uganda, South Sudan, Rwanda, and Burundi, and plans to integrate the new acquisitions into its existing operations over the next 12 months.
