• I&M Group raises stake in I&M Bank Tanzania to 95.5%

• Deal follows exit of Proparco and MEAL after 15 years

• Group bets on growth in Tanzania’s underdeveloped banking sector

East African financial holding company I&M Group announced on Friday, Jan. 16, 2026, that it had acquired an additional 15% stake in its Tanzanian banking subsidiary, I&M Bank Tanzania (IMTZ). The transaction increases the group’s total stake to 95.5%, up from 84.9%, with private investors retaining the remaining shares.

The deal follows the exit of two private equity funds, Proparco and Microfinance East Africa Ltd (MEAL), after an investment cycle lasting about 15 years. The buyout has received all required regulatory approvals. I&M Group said the transaction marks an important milestone in the growth of I&M Tanzania.

The increase in I&M Group’s stake reflects a positive view of the outlook for Tanzania’s financial market. According to a report on Tanzania published in January 2025 by the French Development Agency (AFD), the country has an underdeveloped banking sector, with total assets equivalent to 30% of GDP. The sector is also highly concentrated, with two private banks controlling nearly half of all banking assets, loans and deposits.

Private-sector credit remains low, averaging 12.5% of GDP since 2007, significantly below levels in Kenya and Rwanda. This suggests room for growth in banking services, particularly for individuals and small and medium-sized enterprises (SMEs).

For I&M Group, increasing its stake in the Tanzanian subsidiary provides stronger control over governance, commercial strategy and capital allocation. It also reinforces the group’s intention to concentrate resources on its historical East African markets. In addition, the strengthened control improves visibility and transparency for shareholders of the Nairobi-listed group.

For I&M Bank Tanzania, the challenge now shifts to execution. The bank will need to increase its market share, broaden its customer base and support national economic priorities, particularly the financing of SMEs and regional trade. The transaction also reflects a broader trend in the region: the rise of East African banking groups seeking majority control of their subsidiaries to better manage growth, risk and profitability across the economic cycle.

Chamberline Moko