(Ecofin Agency) - Less than a year after it entered into a strategic agreement with Atlas Mara to acquire its stake in Banque Populaire du Rwanda (BPR), Kenyan financial group KCB Group has announced it has completed the deal.
Joshua Oigara's group is now the majority shareholder of BPR with a 62.06% stake. The deal received regulatory approvals, including green light from the relevant central banks, competition authorities, and has met other necessary closing conditions. This process follows an initial agreement in November 2020 under which the London Stock Exchange-listed financial institution, Atlas Mara, committed to sell banking assets in Rwanda (Banque Populaire du Rwanda) and Tanzania (BancABC Tanzania).
The sale aligns with Atlas Mara's ambition to reposition itself on the continent and achieve consistent profitability. KCB Group, the majority shareholder, is well ahead of the joint venture Arise B.V., which holds a 14.61% stake in the capital of BPR. The Kenyan group, which is already present in Rwanda via KCB Bank Rwanda, intends to strengthen its footprint in the country. It plans to merge its banking assets in Rwanda and build a stronger institution.
Rwanda has 11 commercial banks in operation, according to an April 2021 report by the central bank. In addition to KCB Group, other Kenyan financial groups such as Equity and I&M Holdings also have subsidiaries in the country.