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The Kenya Commercial Bank (KCB) group announced on Thursday that it had signed an agreement with Atlas Mara Limited (ATMA) to acquire banking businesses in Rwanda and Tanzania.
“KCB Group Plc (KCB) and Atlas Mara (ATMA) have signed a definitive agreement that will see East Africa’s largest bank by assets increase its presence in the region,” KCB said in a statement.
The deal will see KCB acquire a 62.06 percent stake in Banque Populaire du Rwanda Plc (BPR) and a 100 percent stake in African Banking Corporation Tanzania (BancABC).
Completion of the transaction is subject to obtaining shareholder approval and regulatory approvals in the respective countries, the statement added.
The acquisition of BPR will see KCB double its market share and become the second largest bank in Rwanda. Meanwhile, the merged entity in Tanzania is expected to rank among the top ten banks in the industry.
KCB Group CEO and CEO Joshua Oigara said the deal will support the bank’s business growth in the post-COVID-19 macroeconomic recovery.
“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 Oigara.
He added that the agreement will strengthen KCB’s leadership position and give it a stronger lead to play a greater role in advancing the financial inclusion agenda in the East Africa region.
“Our growth strategy is based on organic and inorganic plans and we will continue to seek opportunities that increase the value of our shareholders.”
Currently, KCB has a presence in Tanzania, South Sudan, Uganda, Rwanda, Burundi and a representative office in Ethiopia.
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