Kenya’s leading banks, Equity Group Holdings and KCB Group Plc, are mandated to relinquish at least 30% of their stakes in their Democratic Republic of Congo (DRC) subsidiaries by the end of 2026.
This directive stems from the DRC’s central bank, Banque Centrale du Congo (BCC), which requires banks operating in the country to have at least four unrelated shareholders, each holding a minimum of 15% stake.
Additionally, local shareholders must collectively own at least 45% of the bank’s shares.
Both Equity and KCB currently own 85% stakes in their respective DRC subsidiaries—Equity BCDC and Trust Merchant Bank (TMB).
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These holdings have been highly profitable, with Equity BCDC reporting a 29% increase in net profit to Ksh.15.6 billion and an asset base of Ksh.656.5 billion in the previous year.
Similarly, KCB’s TMB posted a net profit of Ksh.10.4 billion in 2024, up from Ksh.8.1 billion the previous year.
The BCC’s regulation, known as Instruction 18, aims to spread ownership to mitigate risks and enhance local participation in the banking sector.
This move has significant implications for foreign banks operating in the DRC, including potential delays in transactions such as the sale of the National Bank of Kenya (NBK) to Nigeria’s Access Bank, which must also comply with the new ownership requirements.
