KCB Invests in Rwanda and Tanzania units
The financial services company based in the African Great Lakes region, KCB Group, has recently invested Sh905mn (US$1mn) in its Tanzania and Rwanda units. This will position their capital for further growth. The lender’s chairman Andrew Kairu said: “Economies like Rwanda and Tanzania have demonstrated the capacity for higher returns in the financial services sector.”
According to their annual report (year ending December 2018), KCB has invested Sh519mn ($893,000) to its Tanzanian subsidiary. This totals the investment, which spans across 14 branches, to Sh3.5bn (US$6mn). KCB’s Rwandan subsidy received Sh386mn ($664,000) for its own respective 14 branches. This raised total investment to Sh2.2bn ($3mn).
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This news follows alongside the announcement from the Groups CEO Joshua Oigara, who shared plans to obtain two banks: one in Rwanda and one in the Democratic Republic of the Congo (DRC).
Kairu noted that Kenya was overbanked as opposed to other major areas of Africa such as Nigeria and South Africa. He said that these subsidiaries may provide better returns, and that “KCB remains open to opportunities to further grow the financial sector.”