KCB bank. Courtesy photo
Nairobi, Kenya | Xinhua | The Kenyan regional bank KCB Group has completed the acquisition of Banque Populaire du Rwanda (BPR) from Atlas Mara Mauritius and Arise.
Joshua Oigara, CEO of KCB, said the purchase, following obtaining the necessary regulatory approvals in Kenya and Rwanda, will make the lender the majority shareholder in BPR, Rwanda’s second largest bank, effective Wednesday.
“The shared history of BPR and KCB will take the group to greater heights and give us a stronger head start to play a bigger role in promoting the agenda for financial inclusion and economic empowerment in the East African region,” Oigara said in an in Nairobi issued a published statement.
KCB has subsidiaries in Tanzania, South Sudan, Uganda, Rwanda, Burundi and a representative office in Ethiopia.
Oigara noted that the completion of the transaction in Rwanda will give the Kenyan financial institution a stronger head start in deepening the Group’s ongoing strategy to expand its regional footprint.
“This will increase our reach and improve our operational leverage by allowing us to bring our existing retail and wholesale offerings to a wider customer base in Rwanda while positioning the bank for sustainable growth over the long term,” added Oigara.
He revealed that the purchase was intended to eventually create a banking unit in Rwanda through the merger of KCB Bank Rwanda and BPR.
Oigara added that KCB Bank also intends to acquire 100 percent of the shares in African Banking Corporation Tanzania (BancABC) from ABC Holdings (96.6 percent) and Tanzania Development Finance Company (3.4 percent).
He said the proposed acquisition is still pending regulatory approval.