Business & Money
Britam Holdings Plc Expands into DRC: Strategic Move for Pan-African Growth
Since its founding in 1965, Britam Holdings Plc has become a major player in East Africa’s financial services sector. The company has expanded its presence in Uganda, Tanzania, Rwanda, South Sudan, and Mozambique in the past decade. Gross earned premiums surged from KSh 15 billion in 2014 to KSh 40 billion in 2023
By Charles Wachira
Britam Holdings Plc, a leading financial services and insurance provider in Kenya, is poised to make a significant entry into the Democratic Republic of Congo (DRC) market. This strategic move, set to unfold through the acquisition of an established local insurer, marks a pivotal step in Britam’s ambitious pan-African expansion drive. The company’s strategy is aimed at mitigating sovereign risks and diversifying its revenue streams.
Historical Context and Recent Performance
Since its founding in 1965, Britam Holdings Plc has grown to become a significant force in East Africa’s financial services industry. Over the past decade, Britam has pursued a robust growth trajectory, expanding its footprint into Uganda, Tanzania, Rwanda, South Sudan, and Mozambique. The company’s gross earned premiums increased from KSh 15 billion in 2014 to KSh 40 billion in 2023. It has continuously provided impressive financial metrics. In 2023, Britam reported a net profit of KSh 2.7 billion (US$20,895,640.20),which was a 20% increase from the previous year, driven by strong performance in its life insurance and asset management divisions.
The Rationale for Entering the DRC Market
The DRC represents a significant growth opportunity for Britam. With a population exceeding 95 million and a burgeoning middle class, the DRC insurance market remains largely underpenetrated, with insurance penetration rates below 1%. This presents Britam with substantial market potential to tap into, aligning with its strategic objective to enhance its pan-African presence and reduce over-reliance on its core markets in Kenya and Uganda.
“We are looking at the market (DRC) seriously and hope to enter in the next six to eight months. We are open to either acquisition or greenfield investment.We are currently, looking at an acquisition,” Britam Group Chief Executive Tom Gitogo said in an interview June 2024
Acquisition Strategy and Financial Implications
Britam plans to enter the DRC market through the acquisition of a well-established local insurer. This approach allows Britam to leverage existing market knowledge, distribution networks, and regulatory compliance frameworks, thereby accelerating its market entry and reducing operational risks. With regulatory approvals pending, the acquisition, estimated at USD 50 million, is anticipated to close by Q4 2024.
Forecasts and Future Outlook
Britam’s entry into the DRC is anticipated to drive significant revenue growth. The company forecasts that its gross earned premiums will increase by 15% annually over the next five years, with the DRC operations contributing an estimated KSh 5 billion by 2028. Furthermore, Britam aims to achieve a market share of at least 10% in the DRC insurance sector within five years, positioning itself as a key player in the market.
Beyond the increase in revenue, Britam anticipates increased profitability via economies of scale and operational synergies. The company’s net profit margin is expected to rise by 3% by 2028, supported by higher investment income from the DRC market and cost efficiencies.
Strategic Initiatives
Britam’s expansion into the DRC is part of a broader strategic initiative to establish a significant presence across 12 African countries by 2030. The company plans to invest over USD 200 million in acquisitions and organic growth initiatives across the continent over the next six years. Britam’s dedication to innovation, customer-centric solutions, and digital transformation serves as the foundation for this pan-African expansion strategy.
Conclusion
Britam Holdings Plc’s entry into the DRC market represents a strategic milestone in its quest to become a leading pan-African financial services provider. By capitalising on the untapped potential of the DRC insurance market and leveraging its extensive experience in the region, Britam is well-positioned to achieve sustainable growth and diversification of its revenue streams. The company’s proactive approach to expansion underscores its resilience and adaptability in navigating the dynamic African financial landscape.
As Britam embarks on this new chapter, stakeholders can look forward to enhanced value creation and a stronger presence in Africa’s emerging markets.
Keywords:Pan-African Expansion:DRC Insurance Market:Revenue Diversification:Acquisition Strategy:Financial Growth
: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.
KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September
This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.
Profit Growth Driven by Core Business Performance
The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.
Non-Performing Loans a Key Concern
Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.
KCB Stock Outshines Peers on NSE
KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).
Plans to Sell National Bank of Kenya
Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.
CEO Paul Russo Optimistic About Year-End Performance
“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed
confidence in closing the year on a high note, leveraging improving economic conditions
across the region.
Key Figures at a Glance
● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date
KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.
Business & Money
Top 10 Kenyan banks by total assets as of 2023, based on data from the Central Bank of Kenya:
KCB Bank Kenya Limited
Total Assets: KSh 1.425 trillion
Market Share: 17.4%
Equity Bank Kenya Limited
Total Assets: KSh 1.004 trillion
Market Share: 12.2%
NCBA Bank Kenya PLC
Total Assets: KSh 661.7 billion
Market Share: 9.2%
Co-operative Bank of Kenya
Total Assets: KSh 624.3 billion
Market Share: 8.8%
Absa Bank Kenya PLC
Total Assets: KSh 520.3 billion
Market Share: 6.6%
Standard Chartered Bank Kenya
Total Assets: KSh 429.3 billion
Market Share: 5.9%
Stanbic Bank Kenya
Total Assets: KSh 449.6 billion
Market Share: 5.8%
I&M Bank Limited
Total Assets: KSh 405.6 billion
Market Share: 5.4%
Diamond Trust Bank Kenya
Total Assets: KSh 399.6 billion
Market Share: 5.3%
Bank of Baroda (Kenya) Limited
Total Assets: KSh 201.9 billion
Market Share: 2.8%
These rankings illustrate the dominance of large Tier 1 banks, which collectively control over
76% of the market share. Strategic expansions, increased deposit mobilisation, and robust
lending practices underpin the sector’s strong performance
: Vasundhara Oswal, daughter of industrialist Pankaj Oswal, faces serious
charges in Uganda. The Oswals call for UN intervention amid claims of corporate
jealousy.
Vasundhara Oswal, the 26-year-old daughter of prominent Swiss-Indian industrialist
Pankaj Oswal, has found herself at the centre of a legal storm in Uganda.
Her father, a well-established business figure, is known for his diverse investments,
most notably a $150 million ethanol plant in Uganda.
This plant, the largest of its kind in East Africa, is a key part of Oswal’s broader strategy
to invest in industrial and eco-friendly solutions in the region. The facility produces extra-neutral alcohol (ENA), which is used in the beverage, cosmetics, and pharmaceutical industries.
It is recognised for its modern technology and sustainable practices, such as zero liquid
discharge, emphasising the Oswal family’s commitment to both industrial growth and
environmental responsibility.
In addition to the ethanol plant, Pankaj Oswal has made strategic investments across
various industries, including petrochemicals, agriculture, and real estate.
His ventures reflect a global reach, extending to Australia and India, where he has
been involved in industries ranging from agriculture to renewable energy.
His diversified business approach and commitment to sustainability have made him a prominent figure in international business. However, in October 2024, the family’s legacy was overshadowed by the legal troubles surrounding Vasundhara Oswal.
She was detained on October 1, 2024, after being accused of involvement in the
alleged murder of Mukesh Menaria, a former employee who had worked with the
Oswals since 2017.
Menaria had accused the family of harassment but later testified under oath that they
had not harmed him Despite this, charges of kidnapping and murder were brought against Vasundhara.
Her family has strongly denied these allegations, claiming that the charges are
politically motivated and part of a larger conspiracy orchestrated by their business rivals
in collaboration with corrupt officials in Uganda.
The Oswals have appealed to the United Nations, seeking intervention and asserting
that the legal proceedings against Vasundhara are unlawful. Vasundhara has actively managed the family business throughout her career, especially the ethanol plant, and led the company’s sustainable initiatives.
Beyond her business involvement, she has also been an advocate for community
welfare and mental health, further cementing the Oswal family’s reputation for corporate
social responsibility.
The unfolding legal drama has raised important questions about the intersection of
business, politics, and the legal systems in Uganda.
While the Oswal family’s ventures reflect a blend of industrial innovation and social
responsibility, the legal challenges Vasundhara faces have cast a shadow over their
business empire, highlighting the complex dynamics at play in East Africa.
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