KCB eyes regional expansion

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NBK - KCB
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KCB Bank is looking to expand its footprint on the regional scene by setting up subsidiaries in Ethiopia, DR Congo and Somalia.

According to a news report by the Business Daily, the bank is especially drawn to the idea of setting up a fully-fledged branch in Ethiopia by the end of 2020.

This will make the lender the first foreign financier to set up shop in Ethiopia which is known for barring the licensing of fully operational foreign banks within its borders. Currently, KCB Bank only has a representative office in Ethiopia which it established in 2016.

The KCB Bank’s Chief Executive Officer Joshua Oigara is however optimistic that reforms introduced by Ethiopia’s Prime Minister Abiy Ahmed will make it possible for the lender to establish itself in Ethiopia as reported by Business Daily.

“Our main area of focus is to have a business and presence in Ethiopia. We hope that by the end of 2020 we can be allowed to go further whether by opening a branch or through our mobile lending platform,” Mr Oigara is quoted as saying in the interview with Business Daily.

The Business Daily similarly reports that the lender is seeking entry into DR Congo by 2022 which will be spearheaded on the back of acquisitions in the Central Africa nation.

 “In Congo, we are not looking to open a branch and then grow from there. It is going to be through an acquisition or a combination of businesses…in three years we should have made a conclusion to enter the country,” Mr. Oigara said in the Local Daily.

On expanding into Somalia, Mr. Oigara consequently explained that entry into the specific market will prove a hard task especially since the country’s administration has not laid down appropriate banking regulations that will inform lenders on how to operate in the Horn of Africa country.

If successful in its regional expansion quest, KCB Bank will have a presence in ten African nations.

ALSO READ: Moroccan bank, KCB sign MoU expansion pact

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