KCB shareholders approve purchase of two banks in Rwanda, Tanzania


KCB shareholders approve purchase of two banks in Rwanda, Tanzania
KCB Group Chief Executive Officer Joshua Oigara addresses stakeholders during the Group's investor briefing on March 6, 2019 PHOTO | COURTESY

KCB Group shareholders have given their approval allowing the bank to proceed with the acquisition of two banks in Rwanda and Tanzania.

The green light was issued at the lender’s annual general meeting on Thursday which also saw the shareholders sign off on Ksh.3.2 billion annual dividends.

KCB is expected to take up a 100 per cent stake in both the Banque Populaire Du Rwanda (BPR) and the African Banking Corporation Tanzania Limited (BancABC).

The pair of acquisitions which now await regulatory approval is part of KCB’s ongoing strategy to grow its regional footprint.

“These acquisitions will reinforce the Group’s leadership position and give us a strong edge to play a bigger role in driving the financial inclusion agenda in the East African region while building a robust, financially sustainable and profitable organization for the shareholders,” said KCB Group Chairman Andrew Kairu.

KCB expects to close the twin deals this year bolstering its market market share in the two markets and grow their contribution to the Group’s international businesses.

The bank announced its pursuit of the two acquisitions in November last year.

The lender is expected to pay an estimated Ksh.6 billion for the two banks.

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