A KCB banking hall in Rwanda. Many Kenyans may not have heard of Gisenyi, the Rwandan town on the DR Congo border. The one across in DRC is Goma — now everybody has heard of it, if only for its volcano eruptions.
The border point between the two countries, on the Rwandan side, is called Rubavu. With over 90,000 people crossing it at high points, it is thought to be the world’s second-busiest after the main one between the United States and Mexico.
There is a lot of money sloshing around — from the teeming population; (il)legal mining in DRC; large concentration of NGOs and humanitarian workers in Goma, from where most emergency operations for the many crises in eastern Congo are managed; and the emerging lakeside economy on the Rwanda rim of Lake Kivu. This side of the lake is the world capital of methane energy plants, tapping the vast resources of methane gas.
Where there is money to be made in East and Central Africa, Kenyan companies, especially banks, will not be far behind. Gisenyi would be quite recognisable to Kenyans. They would immediately sass out a familiar brand, Serena Hotel, on the Rwandan side. In Goma is a newer and grander one. There is a busy Equity Bank branch in Gisenyi, and in Goma. Footsteps away from Equity Gisenyi is the other behemoth of Kenyan finance, KCB Bank. Financial diplomacy
The border economy here is quite unusual. The Rwandan side has monetised its peace and security. You see, there’s the occasional lawlessness in Goma, which is good business as it means the meddling reach of the state, with its taxes and extortionate licensing fees, is limited, allowing traders to pocket more of their money. But it also means many loaded fellows who make their money in DRC keep it on the Rwandan side, where they also live. They will walk about in Gisenyi with bags stuffed with money, comfortable in the knowledge that they will not be mugged on the street or robbed in their homes at night.
The banks represent many elements — Kenya’s growing financial diplomacy, but also the rising hegemony of Kenyan finance in the sub-region. In Gisenyi and Goma, they feed off low-hanging fruits. But the sharp end of this Kenyan finance capital hegemony is apparent in the capital Kigali. Last year, KCB acquired BPR Atlas Mara, bulking out its financial muscle further in Rwanda. Shortly […]