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The transaction is subject to obtaining regulatory and shareholder approvals in Rwanda and Tanzania.
Mr. Oigara said the transaction is part of KCB’s “ongoing strategy to explore opportunities for new growth while investing in and maximizing returns from the Group’s existing businesses.”
“The transaction fits within the Group’s expansion strategy and will see us increase our market share and distribution network in Rwanda and Tanzania and improve our operating leverage by allowing us to deliver our existing product offerings to a broader customer base while positioning to the bank for long-term growth, ”said Mr. Oigara.
KCB deal comes months later Equity Bank Group canceled its plan to acquire four banking subsidiaries of Atlas Mara Limited in a move aimed at preserving its capital in the wake of the Covid-19 pandemic.
The parties had started talks in April last year, but negotiations targeting Atlas Mara units in Rwanda, Zambia, Tanzania and Mozambique dragged on until the pandemic hit.
The London-listed firm had said it would seek another buyer for the four banks after the stock deal collapsed.
