Kenya’s Biggest Bank May Expand Operations to Four New Countries

NAIROBI, Kenya, Capital Markets in Africa — Kenya Commercial Bank  (KCB) Group Limited, owner of Kenya’s largest bank, may enter Mozambique, the Democratic Republic of Congo, Somalia and Djibouti by 2020, said Chief Executive Officer Joshua Oigara.

The lender is willing to swap shares to fund transactions, he told reporters in the capital, Nairobi, on Friday. KCB will complete an assessment of Chase Bank Kenya Ltd., the failed lender that it is helping to reopen branches and services, within the next six months, Oigara said.

KCB’s plans to expand come as the bank seeks to strengthen its position in East Africa by bolstering international businesses in Uganda, Rwanda, Tanzania, Burundi and South Sudan, where profit has surged. It is also seeking to open a representative office in neighboring Ethiopia.

The company has shareholder approval to raise 10 billion shillings ($99 million) by selling stock to existing investors by the third quarter and may only need capital again in the next four to five years, Oigara said.

Source: Bloomberg News