Kenyan banking group I&M has entered with Ugandan banking landscape with the acquisition of Orient Bank, media reports said. I&M acquired 90 percent in the Ugandan bank from UK-based investment group 8 miles LLP and Morka. Orient Bank has 14 branches across Uganda.
In a statement, I&M said, “The move underscores I&M Group’s commitment to its growth and expansion strategy in Eastern Africa, where Uganda was the missing link in the Group’s strategic effort to set up its presence in all East African countries.”
With the acquisition, I&M takes over loans worth Ushs 255 billion, and customer deposits worth Ushs 603 billion. According to Orient Bank chief executive Kumaran Pather, the bank has a customer base of 70,000 and a staff component of 340 employees.
The Group Executive Director, Sarit Raja Shah told the media, “The acquisition of OBL will place I&M Bank in an advantageous position to capitalise on the growth in the Eastern African economies and thereby ultimately increasing shareholder value.”
“This acquisition is expected to give the Group greater capacity to grow profitably, through extending our network to our regional customers. Further, it demonstrates our continued leadership role in the industry across East Africa.”
In March, Kenya-based banking startup Tanda announced its plans to expand its operations regionally as well as to other markets in Africa Earlier this year, Tanda concluded a fresh funding round, where investors such as HAVAÍC, Zedcrest Capital, DFS Lab, Victor Asemota among others participated.