This archive report was first published on 26 August 2021.
Kenyan-based banking giant KCB Group PLC has made a significant move in its regional expansion strategy by acquiring Banque Populaire du Rwanda Plc (BPR) from Atlas Mara Mauritius Limited and Arise B.V.
According to KCB Group CEO and MD Joshua Oigara, the completion of the transaction in Rwanda will give the Group a stronger edge in deepening its regional presence.
"The combined history of BPR and KCB will take the Group to greater heights, giving us a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East African region," said Mr Oigara.
Mr Oigara further stated that the acquisition will increase the Group's scale and improve its operating leverage by enabling it to deliver its existing retail and wholesale offerings to a wider base of customers in Rwanda while positioning the bank for sustainable growth in the long-term.
BPR is a strong retail and SME Bank with the largest branch network in the sector and a long history spanning over 45 years in Rwanda.
The plan is to eventually create one banking entity in Rwanda to be named BPR Bank by merging KCB Bank Rwanda and BPR. The combined bank will become the second largest bank in the industry.
Additionally, KCB Group intends to acquire 100% shareholding of African Banking Corporation Tanzania Limited (BancABC) from ABC Holdings Limited (96.6%) and Tanzania Development Finance Company Limited (3.4%). The proposed acquisition is however pending some approvals.
