Kenyan Banks Rake in Shs257 Billion from Ugandan Subsidiaries
Kenyan banks have reported substantial profits from their subsidiaries in Uganda, according to a recent annual supervision report by the Central Bank of Kenya. The report reveals that Kenyan banks earned approximately Shs256.5 billion (Ksh8.89 billion) from their Ugandan operations during the year ending December 2023.
Kenyan banks with a notable presence in Uganda include KCB, Equity, I&M, and NCBA. Despite Uganda being a significant market, it ranks third in profitability for Kenyan banks, trailing behind the Democratic Republic of Congo (DR Congo) and Rwanda. Uganda’s profits exceeded those from Tanzania and South Sudan.
The Central Bank of Kenya’s report highlights that Kenyan banks operating in the East African region achieved a combined gross profit of Shs1.9 trillion (Ksh66.13 billion) in 2023, a remarkable increase of 103.4 percent compared to Shs933 billion (Ksh32.33 billion) in 2022. DR Congo and Rwanda together contributed to 66.4 percent of the total profits from regional subsidiaries.
DR Congo emerged as the most lucrative market, generating Shs868.6 billion (Ksh30.1 billion), while Rwanda produced Shs398.5 billion (Ksh13.81 billion). Tanzania saw a notable improvement, increasing its profits from Shs26.4 billion (Ksh918 million) in 2022 to Shs162.7 billion (Ksh5.64 billion) in 2023.
Kenyan banks have intensified their focus on DR Congo, which experienced the fastest growth among regional markets. The value of assets held by subsidiaries in DR Congo more than tripled from Shs282.3 billion (Ksh9.785 billion) in 2022. Kenyan banks, including KCB and Equity Group, have established a strong foothold in DR Congo, with KCB operating 109 branches and Equity Group managing 79 branches.
The report indicates that DR Congo accounted for 36.4 percent of the total Shs11.6 trillion (Ksh402 billion) in loans issued by Kenyan banks in the region, up from 34 percent in 2022. The total assets of Kenyan bank subsidiaries grew by 43.1 percent to Shs66.6 trillion (Ksh2.31 trillion), with DR Congo representing 39.3 percent of this amount, totaling Shs26.2 trillion (Ksh910.64 billion).
The significant growth in DR Congo is attributed to the expansion of KCB Group’s operations, particularly through the opening of new branches by Trust Merchant Bank in the country.
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