KCB adds 2,500 Staff on Congo Unit Buyout

Following the purchase of a controlling interest in the Trust Merchant Bank (TMB) of the Democratic Republic of the Congo and new hiring across other units, KCB Group increased the number of employees on its payroll by 2,560 last year.

After the acquisition of 85 percent of TMB by KCB in mid-December of last year, the group’s workforce increased from 8,538 to 11,098 by the end of the year-ended December.

The DRC division employs 1,752 people. Additionally, 720 new employees were hired by KCB Group for its Kenyan operations, while 52 and 20 more people were employed by its subsidiaries in South Sudan and Rwanda, respectively.

With the addition of 10, 6, and 3 employees in Tanzania, Uganda, and Burundi, respectively, KCB Group’s position as the largest employer among Kenyan lenders was further cemented.

The jump in payroll expenses inflated the bank’s overall operating costs from Sh60.82 billion to Sh72.6 billion.

“Costs were up 24.1 percent compared to last year on account of increased business activities and impact of BPR and TMB acquisitions,” said the lender.

The bank reported a record net profit of Sh40.8 billion, a 19.5 percent increase from Sh34.2 billion, as higher income offset the rise in costs.

The pre-tax profit contribution made by KCB Group’s subsidiaries outside of KCB Bank Kenya last year increased from 13.9 percent in 2021 to 17.8 percent, or Sh9.78 billion.

The group’s profit before tax increased by 47% from subsidiaries outside of KCB Bank Kenya, driven by companies in Rwanda, Uganda, and Tanzania.

Pre-tax profit for the Rwandan division, Banque Populaire du Rwanda Plc (BPR), was Sh3.69 billion. KCB Tanzania (Sh1.57 billion), KCB South Sudan (Sh1.24 billion), and the National Bank of Kenya (Sh1.24 billion) were next (Sh1.02 billion).

The Burundi division ended the previous year with a pre-tax profit of Sh823 million, compared to Sh793 million for KCB Uganda. The Sh638 million in pre-tax earnings were returned by KCB Bancassurance Intermediary Limited.

The KCB Group ended the previous year with 603 branches, up from 492 the year before. In order to further extend its physical presence, the group now plans to open 12 new branches in Kenya and Tanzania.

Six of the branches will be in Kenya, and the same number will be in Tanzania, where KCB is still looking to make acquisitions after the agreement to buy the entire African Banking Corporation Tanzania Limited fell through in December 2021.

As a result of increased lending, investments in government securities, growth in customer deposits, and additional borrowings, KCB’s total assets increased by 36.4 percent to Sh1.55 trillion.

With a growth of 35.6 percent to Sh1.135 trillion, customer deposits surpassed the trillion-shilling mark, primarily due to TMB and organic growth in the existing businesses.