Nairobi (CU)_The Kenya Commercial Bank (KCB) Group shook off the effects of the COVID-19 pandemic to post a net profit of KShs.6.4 billion (US$59.3 million) in the first quarter of 2021. The financial institution, which is East Africa’s largest commercial Bank, has a network of 355 branches in Kenya, Uganda, Rwanda, Tanzania, South Sudan, Ethiopia and Burundi.
Now it appears that KCB is attempting to increase its footprint even further, as the Group’s shareholders approved to acquire two major banks in Rwanda and Tanzania. During the 50th annual general meeting held a couple of weeks ago, approval was received for KCB to acquire 100 per cent of issued ordinary shares in both Banque Populaire Du Rwanda (BPR) and African Banking Corporation Tanzania Ltd (BancABC).
The plans are said to be a part of the group’s efforts to increase it’s footprint and achieve regional relevance. “These acquisitions give us a stronger edge to play a bigger role in driving the financial inclusion agenda in East Africa while building a robust financially sustainable and profitable organisation,” KCB Chairman Andrew Kairu said.
Having received shareholder approval, the move is now subject to receipt of final regulatory approval.
“The acquisition of BPR and BancABC provides KCB with the opportunity to rapidly scale up its balance sheet and revenue streams while leveraging on cost synergies. It will distinguish our organisation from the competition putting it and all its stakeholders on a path to greater prosperity,” in the KCB Group circular to shareholders on the proposed acquisition, Kairu said.
“The proposed acquisition will also create a stronger and more robust institution that will continue to play a key role in enhancing financial inclusion across the region, further cementing KCB’s position as a market leader,” he added.
