RWANDA – Kenya Commercial Bank (KCB) Group has announced plans to open a new subsidiary in Rwanda, seeking to double its regional business in the next two years and support economic expansion in Rwanda.
The lender merged KCB Bank Rwanda with its newly acquired Banque Populaire du Rwanda (BPR) to form BPR Bank Rwanda Plc last month.
The acquisition of majority shareholding of BPR was successfully completed in August 2021, through outright purchase of Atlas Mara and Arise B.V. shares to a tune of US$32 Million, following approvals from both financial sector regulators in Kenya and Rwanda.
BPR is now the second-largest lender in Rwanda, following the merger, giving KCB a stronger edge in deepening its corporate and retail banking in the country.
BPR Bank Rwanda has an asset base of US$632 million, and a network of 154 branches, after Bank of Kigali, the biggest local bank.
The Bank says scaling its regional business is critical for the future, adding that it will bolster its investments in Rwanda. The lender is currently eyeing another opening the Democratic Republic of Congo.
KCB Group CEO Joshua Oigara says the bank will invest significantly to support the key economic sectors like housing, agriculture, and hospitality.
“We are delighted with the possibilities that lay ahead, as this integration has enabled us to buttress our leadership position, giving us a stronger edge to play a bigger role in driving the financial inclusion agenda in East Africa, while building a robust and financially sustainable organisation,” said Mr Oigara during the unveiling of BPR Bank in Kigali.
“The new entity, BPR Bank Rwanda plc, now allows our customers to enjoy exciting retail and wholesale offerings and the wide branch network is an opportunity for us to roll out products and services to MSMEs and the rural community in Rwanda.”
“Our customers in Rwanda,” he continued, “will also have access to a larger network of agents across the country and will benefit from enhanced digital capability, transactional banking solutions, trade finance expertise and international banking offering from KCB.”
The Group has subsidiaries in Tanzania, South Sudan, Uganda, Rwanda, and Burundi as well as a representative office in Ethiopia.
The Bank subsidiaries, including the National Bank of Kenya, which was acquired by KCB in 2019, doubled their total contribution to the Group’s net profit to US$47.32 million from UD$24.1 million, for the full year ending December 31, 2021.
Speaking at the launch event, Prime Minister Dr Édouard Ngirente said that with 154 branches in Rwanda and over 1,300 staff members, the investment that KCB Group has made in Rwanda will greatly enhance the economic empowerment of Rwandans.
Prime Minister Edouard Ngirente presides over the official launch of BPR Bank Rwanda Plc in Kigali.
“KCB Group’s continued investment in Rwanda since December 2008 has been a blessing for Rwandan people. Over 450 people have been trained under the Igire social enterprise programme,” he added.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
