KCB Group will officially begin operations in the Democratic Republic of Congo (DRC) after its acquisition of a majority stake in the Trust Merchant Bank (TMB) received nod from regulators, allowing it to expand its services into one of the continent’s most populated countries.
KCB Group had received approvals from regulators in Nairobi, Kinshasa and the region’s trading bloc, the Common Market for Eastern and Southern Africa (Comesa) Competition Commission, to buy 85 percent of TMB.
The acquisition allows KCB access to the vast DRC market, with an estimated population of 90 million, expanding its foothold in the region’s markets amidst a scramble among the largest lenders to enter the DRC market after its entry into the East African Community earlier in the year.
KCB announced the acquisition deal with TMB shareholders in August, and is expected to close by end of this month.
TMB is one of DRC’s largest commercial banks, with an asset base of about $1.5 billion and is a publicly listed company limited by shares. It has a strong offering in retail, SMEs, corporate and digital banking.
Its acquisition, KCB said, will enable the Nairobi-based lender to capitalize on its “18-year operational history, vast branch network, valuable local customer relationships and deep knowledge of local business dynamics” to expand its foothold in the market.
According to KCB, their expertise and experience in the banking industry will provide TMB’s existing and prospective customers with “enhanced banking products that is expected to grow and embed KCB’s brand in the DRC market and beyond”.