Kenya Commercial Bank Group’s shareholders approved a proposal to acquire up to 100 percent of issued ordinary shares in two banks in Rwanda and Tanzania.
Approval for the acquisition of Banque Populaire Du Rwanda (BPR) and African Banking Corporation Tanzania Ltd (BancABC) was granted electronically during the 50th annual general meeting held on May 27.
KCB said the acquisitions in Rwanda and Tanzania are part of the group’s ongoing strategy to achieve regional relevance and will increase the brand’s footprint while reinforcing existing market capabilities.
"These acquisitions give us a stronger edge to play a bigger role in driving the financial inclusion agenda in East Africa while building a robust financially sustainable and profitable organisation," said KCB Chairman Andrew Kairu.
The transactions are subject to receipt of final regulatory approval having received shareholder approval following the offer made by the Kenyan-owned bank late last year.
"As the economy continues to reopen, we are strengthening our balance sheet to give us room to support our customers and stakeholders through the crisis while ring-fencing business for post-pandemic growth," said KCB Chief Executive Joshua Oigara.
KCB shook off the effects of the ongoing Covid-19 pandemic to post a net profit of $640 million in the first quarter of 202o. The growth in profitability from $630 million a year earlier was on the back of increased net interest income and cost-saving initiatives.
KCB has spread into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia. It has the largest branch network in the region with 355 branches, over 1,100 automated teller machines, and over 23,460 merchants and agents.