KCB Bank plans to strengthen its market position in the East Africa region in Rwanda, Uganda, Burundi, and South Sudan.
The lender already has subsidiaries in those countries. From the lender’s financial records, Tanzania and Rwanda have been topping in performance.
KCB Bank plans to acquire two banks at a total cost of Kshs 4.39 billion. The lender intends to buy a 62.06% stake in Banque Populaire Du Rwanda. In African Banking Corporation in Tanzania, the lender wants to buy a 100% stake.
They will pay Kshs 3.5 billion for the Rwandan bank. To acquire the 100% stake in the Tanzanian bank, the lender will pay Shs 878 million. The bank’s chief financial officer, Lawrence Kimani, said they have a strong balance sheet, which is vital to support the cash acquisition transaction.
KCB Bank has confirmed they have already signed the share purchase contract agreement and intends to have the acquisition process completed in six months.
The acquisition of the two banks will strengthen their presence in those two countries
The KCB bank CEO, Joshua Oigara, as he announced the new acquisition deal, pointed out that building their market share through mergers and acquisitions is a practical business development strategy.