KCB Group is set to cough Sh4.39 billion to take over two banks in Tanzania and Rwanda as it seeks solidify its presence in East Africa and increase revenue streams.
KCB announced its intention to acquire a 100 per cent stake in the African Banking Corporation Tanzania Limited and a 62.06 per cent stake in the Banque Populaire Du Rwanda.
The bank is already present in Tanzania and Rwanda and signed a share purchase agreement with London-based Atlas Mara Limited with the purchase set to be completed in six months.
KCB currently operates in Tanzania, Rwanda, Uganda, Burundi and South Sudan and CEO Oigara says the bank seeks to strengthen its position in the particular regional markets and further.
“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 product offerings to a wider base of customers,” Oigara said.
Kenya Commercial Bank is set to pay Sh3.5 billion for shares in the Banque Populaire Du Rwanda and Sh878 million to fully take over the ABC Bank Tanzania.
However, the planned acquisitions are subject to regulatory approvals in the two countries.