KCB Bank Kenya plans to spend $40 million in acquisition of major stakes in Banque Populaire du Rwanda and a Tanzanian BancABC. It is reported that the acquisition will be finalised within six months and it will push the Kenyan bank to the fore-front of the African banking system.
The bank has signed a deal with London-listed financial services firm Atlas Mara to acquire its stakes in Rwanda and Tanzania. The proposed transaction will seek the bank to acquire Banque Populaire du Rwanda Plc (BPR) and the African Bank- ing Corporation Tanzania (BancABC).
KCB Bank Kenya is the largest lender by assets. The new acquisition will expand its footprint while strengthening its business in both countries, media reports said. In May, KCB Bank Kenya had decided to acquire Imperial Bank, which was under receivership, according to the Central Bank of Kenya. In 2015, Imperial Bank was placed under receivership owing to inappropriate banking practices.
Now the transaction for the new acquisitions by KCB is expected to push its ranking to the second position in Rwanda. That said, its position in Tanzania might move to between eight and 10, media reports said.
KCB Group CEO said in a statement “The transaction fits within the Group’s expansion strategy and will see us increase our market share and distribution network across Rwanda and Tanzania and improve our operating leverage by enabling us to deliver our existing proding the bank for sustainable uct offerings to a wider base growth in the long-term.”