In what marks the latest expansion of the wealthy family’s empire, the Commercial Bank of Africa (CBA) is in the running to acquire the Rwandese subsidiary of Uganda’s Crane Bank.
The Nairobi-based lender is looking to outbid rival banks that are also seeking to purchase Crane Bank Rwanda branches currently owned by Dfcu Bank.
The Bank of Uganda last October took over the management of Crane Bank — at the time the country’s fourth-largest lender — due to under-capitalisation and in January sold it to Dfcu, which is now seeking to offload the Rwandan unit.
If CBA is successful in its bid, the mid-tier Kenyan lender will have a physical presence in four countries, including Uganda and Tanzania, moving it closer to its target of having operations in 10 African countries.
The Dfcu’s sale of part of its Rwandan business is now awaiting regulatory approval and that the deal should be complete by the end of this month.
Isaac Awuondo, CBA Group’s managing director, has previously stated that the lender plans to set up shop in all East African nations, with branches in South Sudan, Rwanda and Burundi.
The bank has also said it is targeting Mozambique, DRC and Ethiopia through an online presence. CBA has two branches in Uganda, 11 in Tanzania and 33 in Kenya.
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