Diamond Trust Bank (DTB) Kenya Limited is selling its stake in its Burundi subsidiary, marking an exit from the market after 16 years.
The listed bank said it will be selling its 83.67 percent stake in DTB Burundi to a consortium led by an existing minority shareholder.
DTB did not disclose the size of the transaction but in its annual report it indicated that its total investment in the subsidiary stood at Sh636.9 million as at the end of 2024.
Total assets held by the subsidiary stood at Sh4.6 billion at the end of 2024 which was a decline from Sh5.9 billion marked a year earlier.
“The DTB Kenya Board has reviewed the offer from the consortium and our long-standing partner in Burundi and considers that it represents a fair value and return on investment for DTB,” said DTB Group CEO, Nasim Devji.
Though the bank did not disclose the minority shareholder, previous regulatory filings and transactions show Unik Investment S.A led by a Burundian based investor called Shafiq Jiwani is the remaining minority shareholder in the subsidiary.
Unik Investment held 16.33 percent shareholding during the set up of the operation in 2008, with an associate of the minority investor --Aliya Shafiq Jiwani-- serving on the Burundi board of directors.
Other investors who were invited to the greenfield subsidiary in 2008 included Abu Dhabi-based investment entity, Al Bateen Investment Company LLC (16.33 percent) and World Bank’s investment arm International Finance Corporation (IFC) which also took up 16.33 percent stake. DTB Kenya was the anchor shareholder with a 51 percent shareholding.
However, Al Bateen Investment did not take up its stake, resulting in DTB opening with a 67.34 percent stake in June 2009 then valued at Sh262.9 million.
DTB bought out IFC in 2018 for Sh152.2 million when its stake rose to the current 83.67 percent. DTB was the first Kenyan bank to enter Burundi where it was joined by KCB Group in 2012. KCB is still in Burundi.
The Burundi unit contributed Sh50.6 million to DTB’s profit before tax in the year ended December 2024, which was a 56 percent drop from the previous year when it generated Sh115 million.
The exit from Burundi means the bank, classified among large lenders in Kenya, will have a regional presence in Uganda and Tanzania.
The bank has four branches in Burundi with 51 employees.
Burundi is currently facing high inflation, reaching 39 percent early in the year fueled by a shortage of foreign exchange and fuel scarcity.
DTB, which is listed on the Nairobi Securities Exchange, issued a cautionary announcement to the market as it awaits closure of the deal.
“Completion of the proposed transaction is subject to conditions that are customary for transactions of this nature, including receipt of all regulatory approvals from, amongst others, the Central Bank of Kenya and the Bank of the Republic of Burundi, and to notifications to the Capital Markets Authority and, if required, other relevant regulators,” reads the Cautionary Announcement.
DTB shares on Monday closed at Sh104.75 per share with shares worth Sh22 million traded during the day.
