Bank of Kigali is now past the approval stage of becoming one of the new foreign banks in Nairobi, Kenya, after the Central Bank in the latter East African country gave it a nod. CBK said in a statement that the Rwanda bank has booked its slot for making the move to the Kenya capital as the need to exploit the bubbling corporate opportunities’ scene grows, with an expectation that the setting of base here will lead to greater competitiveness for the Kenya financial market.
The decision to test the waters across the borders by the Bank of Kigali is but one of the many bilateral ties that have sprouted in a region that is increasingly attracting investment, pan-African, worldly or otherwise, with analysts commentating on the huge role that the banking industry will play in perpetuating this growth.
Key areas where investments can flourish include agriculture and the ICT sectors, each of which is a boon for the enterprising Kenyan psyche.
The Kenya-Rwanda relationship has never been one over troubled waters, for since the end of the 1994 genocide, the country’s miraculous rise into becoming one of the trio of the best nations to invest in Africa (2012 report), as well as being the second best global reformer, Rwanda has made gains that regional neighbors are clamoring to tap.
Kenya, in fact, has already begun its exploitation of the lush banking sector in the dearth of serious competition in the Great Lakes region. Indeed, the micro-finance-cum-Pan-African banker, Equity Bank, Kenya Commercial Bank and Standard Chartered, all Kenyan brands have invaded Kigali in recent years, supplementing what Bank of Kigali and others have to offer.
In the third week of February 2013, a Rwanda delegation jetted to Kenya to wheedle investors from the country to come set shop in Rwanda. Key areas where investments can flourish include agriculture and the ICT sectors, each of which is a boon for the enterprising Kenyan psyche.
The Rwandans are sending signals to their Kenyan counterparts with a hope to inspire an agricultural wanderlust that can improve the technological stakes of farming in that country where 90% of the working population are subsistence farmers.
The Rwandan Business Board (RDB) said that it is all eyes on Kenya and other East African Community (EAC) member states setting base in their economy, to spur even further its exponential growth rate that once reached 13.4% in 2008.
Kenya will also be a major beneficiary courtesy of Rwanda establishing new financial ties, as the Bank of Kigali ranks as one of the biggest financial institutions in asset base, in that country. The bank is exploiting the investment hub in Nairobi just two months after it confirmed to invest in Kampala with a starting capital base of $10 million.