Democratic Republic of Congo (DRC) has been declared the most profitable market for Kenyan banks’ subsidiaries within the East African Community (EAC), overtaking Rwanda.
According to latest data from the Central Bank of Kenya (CBK), DRC has contributed to the highest earning capacity recording KSh 30 billion in profit before tax, translating to 45.5 percent of the total profits.
The regional subsidiaries’ profit before tax increased by 103.4% to KSh 66.1 in 2023 from KSh 32.5 billion reported in 2022.
The country boasts important minerals including cobalt, copper and coltan used in electric vehicle batteries production.
With the high global commodity prices of these raw materials and the aggressive demand for electric vehicles, DRC presents a great market opportunity in the banking sector.
“Equity Bank entered the market by acquiring a 67% stake in Banque Commerciale du Congo in 2020. KCB Group also entered the market via an acquisition, this time of Trust Merchant Bank. This expansion into the country was further boosted when Kinshasa formally joined the EAC in 2022,” the report read
“The regional expansion has been lucrative for Kenyan lenders, which now have a combined deposit base of KShs. 1.8 trillion, from Ksh 1.3 trillion in 2022, in their subsidiaries outside their home market. In 2023, for example, 51% of Equity’s deposits streamed in from subsidiaries in DRC, Rwanda and Tanzania. Equity Group Plc’s subsidiary in DRC, Banque Commerciale Du Congo -BCDC had total deposits of KSh 504 billion, 28 per cent of the total deposits of subsidiaries across all banks.”
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