The Democratic Republic of Congo (DRC) has surpassed Rwanda as the most profitable market for Kenyan bank subsidiaries in the East African Community bloc, underscoring the significant opportunities in the mineral-rich Central African nation. Recent data from the Central Bank of Kenya (CBK) reveals that pre-tax profits for regional subsidiaries of Kenyan banks more than doubled to Sh66.13 billion in 2023 from Sh32.51 billion in 2022, with the DRC contributing the largest share of 45.52 percent (Sh30 billion).
Kenyan banks’ regional subsidiaries have seen substantial growth in gross loans, which increased by 52.2 percent to Sh1.1 trillion in 2023. The Congolese subsidiaries led this metric with gross loans totaling Sh402 billion, representing 36.4 percent of the regional total. Subsidiaries in Tanzania, Rwanda, and Uganda followed, with respective contributions of 18.6 percent, 17.4 percent, and 16.1 percent.
Equity Group and KCB’s subsidiaries in the DRC—EquityBCDC and Trust Merchant Bank (TMB)—dominate the market, accounting for a significant portion of total assets and deposits. The combined deposit base for Kenyan bank subsidiaries surged by 42.18 percent to Sh1.82 trillion in 2023, with EquityBCDC contributing 28 percent (Sh504 billion) and TMB 14 percent (Sh251 billion).
EquityBCDC and TMB were pivotal in increasing the total assets of Kenyan subsidiaries to Sh2.31 trillion, a 43 percent rise from the previous year. EquityBCDC alone held assets worth Sh622 billion, while TMB had Sh288 billion in assets. This growth highlights the strategic importance of the DRC market for Kenyan banks.
The DRC market’s prominence comes as a shift from previous years when Rwanda was the leading market for Kenyan banks. The entry of Equity Group and KCB into the DRC, particularly after Kinshasa’s accession to the EAC bloc in 2022, has intensified competition in this lucrative market.
Overall, the financial performance of Kenyan bank subsidiaries in the DRC reflects their successful expansion and growing influence in the region. Equity Group’s substantial profit growth and market share emphasize the importance of the Congolese market in their regional strategy.
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