DTB Kenya to Exit Burundi Subsidiary, Sells Stake to Local Investors
The Board of Directors of Diamond Trust Bank Kenya Limited (DTB) has announced plans to sell its entire stake in DTB Burundi, following the signing of a conditional sale and purchase agreement with a consortium of primarily Burundian investors, including the bank’s existing minority shareholder.
In a statement dated September 22, DTB Kenya announced that, subject to regulatory approvals, it plans to sell its 83.67% stake in its subsidiary in Burundi.
The sale comes after the minority shareholder expressed interest in increasing its stake in the subsidiary.
Speaking about the deal, DTB Group Chief Executive Officer (CEO), Nasim Devji, said the Board recognized the importance of supporting Burundian investors, who are keen to accelerate the bank’s financial inclusion agenda. She added that the sale aligns with DTB Group’s strategy to focus on its core markets in Kenya, Uganda, and Tanzania.
“DTB Kenya entered Burundi 16 years ago as part of its financial inclusion agenda. We are leaving behind a stable and well-managed financial institution,” Devji said.
She further noted that the offer represents fair value and a good return on investment for the bank.
Devji also highlighted that the consortium has committed to maintaining and further strengthening Burundi’s subsidiary’s financial inclusion efforts while building on the bank’s established platform of governance and risk management, using local business expertise.
DTB Kenya Exits Burundi Subsidiary, Sells Majority Stake
The subsidiary in Burundi began operations in 2009 with one branch in Bujumbura and has since expanded to four branches. It is now considered one of the top ten banks in Burundi, offering a wide range of banking services to retail, business, and corporate clients.
As part of regulatory requirements for listed entities on the Nairobi Securities Exchange (NSE), the bank, through its Company Secretary Stephen Kodumbe, issued a Cautionary Announcement to notify shareholders and the investing public about the proposed transaction.
The announcement noted that completion of the sale is subject to customary conditions, including approvals from the Central Bank of Kenya (CBK), the Bank of the Republic of Burundi, the Capital Markets Authority, and any other relevant regulators.
Shareholders and investors are advised to exercise caution when trading DTB Kenya securities until the transaction is finalized.
DTB Kenya has pledged to provide further updates in line with regulatory requirements as the transaction progresses.
About the Kenyan Bank
The bank has operated in East Africa for over seventy-five years. DTB expanded to not only serve SME’s but also the agricultural, education, and fintech sectors.
Currently, DTB has 84 branches in Kenya, 36 branches in Uganda, 29 branches in Tanzania, and 4 branches in Burundi. The bank is committed to enabling people to advance with confidence and success.
Diamond Trust Bank Kenya Limited reported strong financial results for the year ended 31 December 2024. The group’s net profit after tax reached Ksh 7.64 billion, compared to Ksh 6.88 billion in 2023.
The bank reported a net profit of Ksh 5.31 billion. Its total operating income rose to Ksh 41.43 billion, while operating expenses amounted to Ksh 30.16 billion.
