KCB Bank to buy banks in Rwanda and Rwanda

KCB Group has signed a deal with London-listed financial services firm Atlas Mara Limited to buy stakes in it's banking units in Rwanda and Tanzania, its chief executive Joshua Oigara announced on Thursday.

The proposed transaction will see Kenya’s biggest lender by assets acquire Banque Populaire du Rwanda Plc (BPR) and the African Banking Corporation Tanzania (BancABC).

Under the proposed deal KCB said it will the acquire a 62.06 per cent stake in Banque Populaire du Rwanda Plc and a 100 per cent stake in African Banking Corporation Tanzania.

The transaction is subject to obtaining shareholder and regulatory approvals in Rwanda and Tanzania.

Mr Oigara said the transaction is part of KCB’s "ongoing strategy to explore opportunities for new growth while investing in and maximising returns from the Group’s existing businesses."

“The transaction fits within the Group’s expansion strategy and will see us increase our market share and distribution network across Rwanda and Tanzania and improve our operating leverage by enabling us to deliver our existing product offerings to a wider base of customers while positioning the bank for sustainable growth in the long-term,” said Mr Oigara.

Reported by Business Daily