The Kenyan Banking Conglomerate – Kenya Commercial Bank (KCB) has announced its plan to purchase a bank in Democratic Republic of Congo within the next two years and also plans to enter into the Ethiopian market.
The announcement was made by the CEO of the Banking group Joshua Oigara during an interview with The East African. He said that the Bank that has operations in 6 countries is continuing to explore new opportunities for growth; DRC and Ethiopia are their next targets.
“We are still a medium-sized institution across the continent and we are relatively a small bank globally…we still have more opportunities and we will continue to see areas like the Democratic Republic of Congo and Ethiopia as areas of focus for us.” Oigara said.
This comes two days after the bank announced its 100% takeover of African Banking Corporation Tanzania (BancABC) and 62.06% stake in Banque Populaire du Rwanda Plc (BPR) both currently owned by Atlas Mara Ltd (ATMA) at a price of UGX 162Bn/Ksh4.37 billion ($43.7 million). The purchase placed KCB as the second largest bank in Rwanda by assets and among the top ten banks in Tanzania.
The purchase also made KCB Group’s total assets exceed USD $10Bn making it one of the richest Banks in East and Central Africa.
KCB’s announcement to enter the 84 Million DRC Market follows the recent purchase of Banque Commerciale Du Congo at $95M in August this year by its closest rival Equity Holdings Group a Kenyan banking company, which established the 15 year old Equity Bank Congo as the second largest bank in the country by the number of assets.
KCB expects to increase its revenue from subsidiaries to 25% of its total revenue from the current 10% in the next two years. Beside the main operations in Kenya, KCB operates in 5 East African countries that include KCB Uganda, KCB Tanzania, KCB Rwanda, KCB Burundi and South Sudan.
KCB Tanzania and Rwanda were the most profitable subsidiaries followed closely by South Sudan and then Burundi. The Uganda’s subsidiary operated in loss in the year 2019.
KCB Group is a public company listed on the Nairobi Stock Exchange and cross listed on Uganda Stock Exchange.
By extending to DRC and Ethiopia, the regional giant will be on its way to break the barriers and join the Pan African Banks that are currently dominated by Nigerian and South African banks.