I&M Tightens Grip on Tanzanian Subsidiary After Raising Stake to 95.5%

I&M Group PLC has significantly strengthened its hold on its Tanzanian banking business after increasing its effective ownership in I&M Bank Tanzania to 95.5 percent through a Sh1.05 billion investment.

The move marks a major step in the group’s regional banking strategy, with the lender acquiring additional shares from existing minority investors and participating in a rights issue after obtaining the necessary corporate and regulatory approvals.

The transaction increased I&M Group’s effective stake from 84.9 percent, giving the Kenyan lender greater control over its Tanzanian subsidiary. According to I&M Group Director for Corporate Advisory and Sustainability Gauri Gupta, the increase was achieved through two separate transactions involving both fresh capital and the acquisition of shares from minority shareholders.

Following the deal, I&M Group directly owns 45.7 percent of I&M Bank Tanzania, while I&M Bank Limited in Kenya holds an additional 49.81 percent, consolidating the group’s overall ownership position.

Gupta said the transaction reflected efforts to support the subsidiary’s growth and meet regulatory capital requirements while also increasing the group’s shareholding through purchases from existing investors.

I&M entered the Tanzanian market in 2010 after acquiring a 55 percent stake in CF Union Bank, which was later rebranded as I&M Bank Tanzania. Since then, the subsidiary has expanded its footprint and now operates eight branches and 11 ATMs across the country.

The bank serves more than 38,000 customers and recorded strong financial performance in 2025, posting a pre-tax profit of about Sh1.2 billion, representing a 10 percent increase. Net profit for the year stood at Sh1.15 billion.

The increased ownership underscores I&M Group’s commitment to deepening its presence in Tanzania as it continues to expand its regional banking operations.