KCB scales regional presence, buys giant stake in Rwanda bank
Regional lender KCB Group has completed the purchase of a 76.7 per cent shareholding in the Banque Populaire du Rwanda Plc (BPR) for Kes4.6 billion ($42.4 million).
The acquisition gives KCB Group the majority stake in BPR, Rwanda’s second biggest bank, with effect from August 25, 2021.
KCB Group Chief Executive Officer Joshua Oigara said that the completion of the transaction in Rwanda will help the lender to further scale its regional presence.
“The combined history of BPR and KCB will take the Group to greater heights, giving us a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East African region,” said Mr Oigara.
“This will increase our scale and improve our operating leverage by enabling us to deliver our existing retail and wholesale offerings to a wider base of customers in Rwanda while positioning the bank for sustainable growth in the long-term,” said Mr Oigara.
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BPR is a strong retail & SME Bank with the largest branch network in the sector and a long history spanning over 45 years in Rwanda.
Going forward, KCB is expected to merge its Rwandese banking subsidiary, KCB Rwanda, into BPR creating a single banking entity.
The Group is also expected to integrate the two banks into one brand with a single management and board by June next year.
KCB Group is expected to expand its footprint in the East African community with 100 per cent stake subscription in the African Banking Corporation Tanzania (BancABC).
The proposed acquisition from ABC Holdings Limited (96.6 per cent) and Tanzania Development Finance Company Limited (3.4 per cent is, however, pending some approvals.
The group’s subsidiaries reported positive growth in profitability in the six months to June with the exception of KCB Uganda, whose profitability declined 16 per cent year on year to Kes182 million.
National Bank of Kenya reported the highest growth in profitability, a 446 per cent year on year surge to Kes1.02 billion.
