KCB Group has entered into a pact with shareholders of Trust Merchant Bank (TMB) to acquire a majority stake in the lender based in the Democratic Republic of Congo (DRC).

The definitive agreement is scheduled to close by the end of the third quarter of 2022 but is subject to the approval of regulators in DRC and shareholders among others.

The move will see KCB acquire 85 per cent of the stakes in TMB as existing shareholders continue to hold the balance for not less than two years before KCB acquires their shares.

KCB will pay a cash consideration for the shares determined based on the net asset value of TMB at completion of the proposed transaction and using a price to book multiple of 1.49.


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The public company limited by shares is one of DRC’s largest banks with US$1.5 billion in total assets as well as strong retail offering, SME, corporate and digital banking channels.

TMB boasts of more than 110 branches and numerous agency banking outlets across DRC.

KCB says the acquisition is aligned with its strategic focus of upscaling its regional presence and, once completed, will complement its regional footprint with an asset base of Sh1.5 trillion and is expected to strengthen its retail and corporate banking franchises.

“This is part of our ongoing strategy to tap into opportunities for new growth while investing in and maximizing returns from the Group’s existing businesses. It gives us strong headroom to accelerate our growth ambitions to deliver better value for our shareholders and to bolster the push for deeper financial inclusion and social and economic transformation in Africa and beyond. We are excited that we can now play a role in catalyzing DRC’s and indeed East Africa’s economic expansion agenda,” said Andrew Wambari Kairu, KCB Group Chairman.


Robert Levy, TMB Chairman, said, “We are very excited about the opportunities KCB offers in this transaction and we are proud to bring our unique DRC insights and experience to the KCB Group. We believe that by combining our local knowledge and standing with the size and expertise of KCB Group, we should be able to increase market share and shareholder value through unlocking our synergies and business opportunities.”

KCB says the acquisition will see TMB clients benefit from top notch digital capabilities, transactional banking solutions, trade finance expertise and access to regional business opportunities offered by KCB Group.

TMB will, in return, avail to KCB Group access to Africa’s second-largest country with a population of more than 93 million people.

In the three months ending March 2022, KCB Group’s profit after tax grew by 54.6 per cent to Sh9.9 billion from Sh6.4 billion in a similar period last year due income growth and reduces loan loss provision.

During that period, revenues shot up by 26 per cent to Sh29 billion on the back of a spike in interest income, rise in non-funded income from lending activities and service fees and a 21.1 per cent increase in earning assets.