KCB completes purchase of Rwandan BPR bank for Ksh.4.6 billion

KCB Group has completed the purchase of a 76.67 per cent stake in the Banque Populaire du Rwanda Plc (BPR) (The Popular Bank of Rwanda).

The Ksh.4.6 billion deal ($42.4 million) follows the securing the requisite shareholder and regulatory approval earlier in the year.

The transaction makes KCB the majority shareholder in the bank, which is the second largest in the country.

KCB Group Managing Director Joshua Oigara expects the transaction to deepen the lender’s 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,” he said.

“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.”

KCB is expected to merge its current operations in the country represented by KCB Rwanda into BPR, creating a single entity in the short-run.

Initially, the pair will run as separate entities before the creation of a single brand under one management and board by June next year.

The transaction is one half of KCB’s deal for Atlas Mara assets in Rwanda and Tanzania.

On the other hand, KCB is expected to close out the acquisition of a 100 per cent stake in the African Banking Corporation Tanzania Limited (BancABC).

The transaction is set to close before October this year pending the booking of prerequisite approvals.

KCB is set to also create a single banking entity in Tanzania by merging BancABC to into KCB Bank Tanzania.