Bank owned by Kenya’s richest families expands to Migori, targeting East African traders

NCBA Group, a leading financial services conglomerate partly owned by some of Kenya’s richest families, has extended its reach to the border county of Migori, positioning itself to tap into local traders as well as neighboring markets in Uganda and Tanzania.

The newly inaugurated branch in Val Plaza in Migori Town, a bustling commercial hub that serves as a vital trade corridor to neighboring communities in Uganda and Tanzania, will cater to the investment needs of wholesalers and provide asset finance solutions for retailers.

This expansion marks a significant milestone for residents of Migori Town, home to Kenyan and Tanzanian nationals, as it grants them access to tailored financial services designed to meet their specific requirements. This move comes on the heels of NCBA Group’s recent announcement outlining plans to establish an additional ten branches within Kenya by year-end.

Headquartered in Nairobi, NCBA Group operates as a non-operating holding company and boasts an extensive network of subsidiaries spanning several African nations, including Tanzania, Rwanda, Uganda, and Côte d’Ivoire.

Founded in 2019 through the merger of NIC Bank Group and Commercial Bank of Africa Group, the leading Kenyan banking group now boasts 109 branches spread across five countries: Kenya, Uganda, Tanzania, Rwanda, and Cote d’Ivoire. Notably, it counts some of Kenya’s wealthiest families, including the Kenyatta, Merali, and Ndegwa families, among its shareholders.

Beyond its efforts to fortify operations within Kenya, this financial conglomerate has also made substantial investments abroad, aligning with its ambition to become a key player in the East African region. Buoyed by this recent expansion, the group has reported exceptional financial performance in the first half of fiscal year 2023, with profits skyrocketing to nearly $65 million.

According to figures disclosed in the group’s financial statement, its profits for H1 2023 surged by an impressive 20.3 percent, leaping from Ksh7.77 billion ($53.6 million) in H1 2022 to Ksh9.35 billion ($64.5 million). This remarkable growth underscores robust performance across all operational segments.

The group’s overall income from interest-bearing assets, encompassing government securities, loans, and advances, witnessed a significant increase from Ksh14.71 billion ($101.45 million) to Ksh24.93 billion ($171.9 million).