Governor confirms KCB to come to Rwanda

Kenya Commercial Bank has met the Rwanda Central Bank’s requirements to operate in the country. It hopes to begin carrying out business early next year, says the Central Bank Governor. Governor François Kanimba said that some of the reasons that attracted the Central Bank to license KCB included its strong shareholding, and its total asset of more than $1 billion (Frw542 billion). “It’s one of the biggest regional banks with one of the best bank management practices and product diversity,” said Kanimba. It’s expected to improve competition in the banking sector and introduce new products on the market. Rwanda currently has eight commercial banks. The bank is currently in the recruitment process for managers. It will then transfer its assets and secure a place for its offices in Kigali. KCB has been expanding its presence across the East African region in recent years, opening branches in Tanzania, Uganda and southern Sudan. It is also eyeing Burundi. KCB is one of Kenya’s oldest banks with a 26.2 percent stake held by the Kenyan government. KCB will be the first regional bank to operate in Rwanda as other international financial institutions have a stake in existing local banks. “We have completed the most complicated phase in banking of under capitalization and the next phase would be improving risk management to international standards,” said Kanimba. The Rwandan government increased the banks’ required operating capital from Frw1 billion to Frw5 billion in 2006, a move that attracted investors to group with local investors to raise the capital in order to operate. The government expects the move to help local banks in product diversification and capacity building by bringing more expertise to the country. Kanimba said he is optimistic that banks will soon move to a modern payment system from cash to electronic. KCB will operate as a Rwandan registered company and has plans to open four branches in the country. Ends

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Governor confirms KCB to come to Rwanda