Shareholders have given KCB Group a nod to acquire Trust Merchant Bank SA (TMB), based in the Democratic Republic of Congo (DRC) in an Extra Ordinary General Meeting held in Nairobi on Wednesday.

In August, KCB entered into a definitive deal with TMB shareholders to acquire 85 per cent of the lender’s shares as existing shareholders continue to hold the remainder for not less than two years.

According to the agreement, after the two-year period KCB will have the right to acquire the remaining 15 per cent shares.

KCB says the move is part of its strategy to expand its regional presence, hasten growth and maintain sustainable long-term regional success while maximizing the returns from its existing businesses.

By acquiring TMB, KCB Group will access the expansive market in the DRC, which is the newest member of the East African Community (EAC).

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“The shareholders' nod is a major milestone for us to accelerate the acquisition process which will allow us to scale up our balance sheet, revenue streams and contribute positively to KCB’s growth and diversification objectives. In turn, KCB will be able to rapidly establish its presence within DRC by leveraging on TMB’s 18-year operational history and vast branch network," said KCB Group Chairman Wambari Kairu.

KCB Group Chief Finance Officer Lawrence Kimathi, KCB Group Chief Executive Officer Paul Russo, KCB Group Chairman Andrew Wambari Kairu and KCB Group Company Secretary & General Counsel Bonnie Okumu. PHOTO/KCB

He added: “In addition, the transaction will position KCB strongly with the resultant effect being enhancing its ability to compete with other financial service providers strongly and effectively in DRC and regionally. This will have long-term benefits for shareholders, customers and employees and enable KCB to realize its long-term vision and mission.”

As a public firm limited by shares, TMB is one of DRC's largest banks, with an asset base of US$1.5 billion, 109 branch network and numerous agency banking outlets spread across the country.

The lender also boasts of an insurance subsidiary called Affrissur SA and KCB believes this will give it good platform to diversify its offerings in the region.

"The approval of the transaction demonstrates the confidence our shareholders have in the financial and strategic benefits of the transaction and the value it provides our regional clients and communities," said KCB Group CEO Paul Russo.

KCB Group Chief Finance Officer Lawrence Kimathi, KCB Group Chief Executive Officer Paul Russo, KCB Group Chairman Andrew Wambari Kairu and KCB Group Company Secretary & General Counsel Bonnie Okumu. PHOTO/KCB

Russo added: "Following the completion of the transaction, the combined organization will have immediate scale benefits to create extraordinary value with a shared customer-centric strategy and broader client capabilities in a rapidly growing market."

The two large banks are expected to conclude their significant transaction before the end of the year after all regulatory approvals are received and other customary closing conditions are met.

KCB Group boasts of an asset base of Sh1.5 trillion (US$ 12.6 billion) and the acquisition of TMB in the DRC is expected to strengthen its retail, corporate and digital banking endeavors in the region.