Diamond Trust Bank Kenya Limited (NSE: DTK) has announced plans to sell its entire stake in its Burundian subsidiary, DTB Burundi, as part of a strategic refocus on its core markets.
The bank’s Board of Directors confirmed that a conditional sale and purchase agreement has been signed with a consortium of primarily Burundian-based investors, including the existing minority shareholder of DTB Burundi. The transaction, once finalized, will see DTB Kenya divest its 83.67% stake in DTB Burundi.
The move comes after the minority shareholder expressed interest in increasing its stake, prompting DTB Kenya to consider an exit that aligns with its broader strategy of consolidating resources in its main markets of Kenya, Uganda, and Tanzania.
Supporting Local Ownership
DTB Group CEO, Mrs. Nasim Devji, said the decision was both strategic and supportive of local participation in Burundi’s financial sector.
“The DTB Kenya Board has reviewed the offer from the consortium and our long-standing partner in Burundi and considers that it represents a fair value and return on investment for DTB,” said Mrs. Devji.
“The consortium has committed to maintaining and further lifting the bank’s financial inclusion agenda on an already established platform of good governance and risk management while applying their local business acumen.”
DTB entered the Burundian market in 2009 with one branch in Bujumbura and has since expanded to four branches, establishing itself among the top ten banks in the country. Over its 16-year presence, DTB Burundi has grown into a stable, well-managed financial institution, providing services tailored to retail, business, and corporate clients.
Regulatory Process Underway
As required under regulatory and listing rules, DTB Kenya has issued a Cautionary Announcement through its Company Secretary, Mr. Stephen Kodumbe, advising shareholders and the investing public to exercise caution when trading in DTB Kenya’s shares on the Nairobi Securities Exchange.
The completion of the proposed sale is subject to customary conditions, including regulatory approvals from the Central Bank of Kenya, the Bank of the Republic of Burundi, and notifications to the Capital Markets Authority, among others.
DTB has indicated it will provide further updates in line with regulatory requirements as material developments unfold.
Strategic Refocus
The planned divestment reflects DTB Group’s ongoing strategy to strengthen its market position in East Africa’s largest economies. By concentrating operations in Kenya, Uganda, and Tanzania, DTB aims to leverage scale, expand its customer base, and invest in innovation to enhance competitiveness in the region’s rapidly evolving financial sector.
