KCB raises stakes with Sh12.4bn war chest

Why has the bank preferred to start operations in new markets from scratch rather than acquisitions, which remove the headache of hiring staff, the struggle to lure deposits, and fighting for market share?

The bank has always been open to both options. The high buyout prices pushed us to set up shop from scratch.

Our entry into the regional market came when international banks were also looking for buyouts and this pushed prices up. But acquisitions remain a prominent strategy on our radar.

You have talked of plans to expand to more African countries. Have you zeroed in on any acquisition target?

We have not drilled down to any since we suspended expansion last year. But the size of our balance sheet now gives us confidence to seriously consider this option in our vision to be an African bank.

Banks are fast adopting the financial supermarket model, which spans from trading shares, selling insurance products and offering loans. Does KCB plan to take this path?

We are looking at it. But it depends on the value model that would add to our business. We are not going to rush to it just because every banker wants to be there. We have to get some synergies.

This is KCB’s third rights issue in six years. How soon should we expect you back to the debt markets?

Not any time soon. We are comfortable that the current capital will carry us through the next three to five years.