KCB Bank Group has unveiled plans to inject Sh4 billion into its Tanzanian subsidiary in a bid to strengthen its capital base and drive growth following the Sh14.2 billion sale of the National Bank of Kenya (NBK) to Nigeria’s Access Bank.
The bank said the recapitalisation aims to enhance KCB Tanzania’s competitiveness, with Group CEO Paul Russo noting that the investment will help push the subsidiary into the country’s top five lenders from its current tenth position. KCB Tanzania currently operates with assets worth Sh86 billion but has been constrained by a thin capital buffer of 14.9 percent, only 0.4 percent above the statutory minimum, limiting its growth capacity.
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The injection will be financed directly from the proceeds of the NBK sale rather than raising additional funds from shareholders or debt markets. According to details of the May transaction, 20 percent of the proceeds or Sh2.8 billion, remain in escrow pending settlement, while Sh6.3 billion will be distributed to shareholders as a special dividend.
In addition to the Sh4 billion capital injection, KCB announced a Sh4 per share dividend, split between an interim Sh2 payout and a Sh2 special dividend. The move underscores the lender’s commitment to boosting shareholder returns after years of conservative distribution strategies.
Russo emphasized that the capital boost would not only shore up KCB Tanzania’s financial position but also accelerate its expansion in a competitive banking sector. “This investment is about building resilience and positioning KCB Tanzania as a strong player in the market,” he said.
The bank is banking on the recapitalisation to improve profitability, unlock lending capacity, and cement its regional growth agenda.
