Good news for Kenyan Banks as Ethiopia opens up to Foreign Banks -

Good news for Kenyan Banks as Ethiopia opens up to Foreign Banks

Post by : Ann Njambuya

Kenyan Banks are reaping big from regional investments especially in the greater eastern Africa region. Top Kenyan Banks have been investing in subsidiaries across the region. This investment have paid of for this top lenders.

With Ethiopia opening up in a bid to increase foreign investment in the country, it seems as if Kenyan firms will benefit greatly. Safaricom is leading the pack of local companies that are expanding into the populous nation. The mobile operator was awarded a trading licence back in 2020 to operate mobile service in the country.

Others that have already joined the pack include Kengen. The power produce is also making headlines after acquiring contracts worth millions of dollars. With this new change in Ethiopia Kenyan banks are expected to join up with a local partner.

Ethiopian PM Abiy Ahmed during a past address. Ethiopia has directed that all banks that want to invest in its market will have to partner with local banks. this has offered a new chance for Kenyan Banks that want to expand into the populous country.

According to sources who spoke to https://www.iconnews.co.ke. The Banks are expected to either join up with a local bank or acquire a local bank. This move will protect local Ethiopian banks from fierce competition.

KCB and Equity bank had already made in roads into the landlocked country with both opening representative offices. KCB opened in 2015 while Equity opened in 2019. This field offices were intended to help their mother companies enjoy a soft landing once they launched full operations.

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Multi-National Brands

It is a common occurrence to see leading Kenyan brand names across the region. Once you visit other east African countries leading Kenyan brands have already established a foothold. Some of this brands include, KCB Bank, Equity Bank, NCBA bank, DT bank, Cooperative Bank. Away from Banks other brands include Brook-side Dairy, Jubilee Holdings,Britam, Safaricom,Kenafric and Kengen.

However Kenyan Banks have been forced to acquire or merge with local banks in their respective countries. This has been attributed to the fact that the banks want more exposure.