Kenya Commercial Bank Group plans to buy banks in DR Congo, Rwanda

Kenya Commercial Bank Group (KCB Group) is planning to purchase a bank in Rwanda and one in the Democratic Republic of the Congo, its chief executive said.

Joshua Oigara, the Chief Executive Officer of KCB Group was speaking to reporters recently but he did not reveal the identity of the two banks the lender is considering acquiring or the timeframe. KCB Group is also planning to open a representative office in China, to take advantage of growing trade links between East Africa and China, he said.

Kenyan banks have announced multiple deals since the government capped commercial lending rates in 2016, crimping their profit margins and forcing them to look for survival strategies, including consolidation.

Last month, KCB offered to buy National Bank of Kenya (NBK) in a swap of one KCB share for 10 NBK shares in a deal seen helping NBK out of its perennial liquidity challenges. CBA Group, a privately held bank, is in the process of merging with NIC Bank to form the third-biggest bank by assets in East Africa.

The second largest bank by assets, Equity Group, said last week it was in talks with London-listed financial services firm Atlas Mara Limited about acquiring stakes in banks in Rwanda, Zambia, Mozambique and Tanzania.

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