The Kenya Commercial Bank (KCB) has joined in the race of top tier local banks who want a piece of the DRC market. Equity was the first and only local bank in the massive country. KCB has made an entrant into the market after acquiring the third largest lender in the massive country. The deal between the KCB bank and the Trust Merchant bank is worth between 15 and 20 billion shillings.
The Democratic Republic of Congo is known for its vast mineral reserves and a huge population that Kenyan Based companies are trying to exploit. The massive country was just accepted as a member into the East African bloc. This makes the country open to the business practises of the bloc.
A few months ago Equity group in conjunction with Governments from Kenya and the DRC organised massive investment tour that saw Kenyan companies express interest to invest in the region.
Expansion Drive into East Africa
KCB had a presence in all East African countries expect the DRC. This however is going to change. With this acquisition KCB is poised to become the third largest lender in the central African country.
According to the chairman KCB group the bank purchased 85% of the Trust Merchant Bank and they are expected to acquire the rest within a period of 2 years. The bank is currently located in the Lumumbashi region which plays home to the largest mining companies in the country. The current banking market in the Vast country is set for the big companies.
This new purchase comes as a surprise as most Kenyan banks set up subsidiaries and then acquire existing banks in the host country in a move to solidify their positions and interests.