Bank M Tanzania is set to enter the Kenyan market, becoming the first Tanzanian lender to do so.
The move comes after Bank M’s parent M Holdings got the approval of the competition authority of Kenya last year to acquire a 51% stake in Kenya’s Oriental Commercial Bank.
Set up in 2002, Oriental operates from eight branches in Nairobi, Mombasa, Nakuru, Eldoret and Kitale.
The Tanzanian bank, established in February 2007 and owned by 15 shareholder, has said that it plans to target family owned businesses in Kenya.
Bank M Tanzania CEO Jacqueline Woiso said: "Our business is focused on family owned enterprises and this strategy has provided us with a very clear direction on understanding the business requirements of the Kenyan market which, even in our original market in Tanzania, are family-owned businesses."
"We have been successful in a market which has over 50 banks in Tanzania. So with a market of 43 banks here definitely we should make our fortune. We still see opportunities that perhaps other banks in Kenya don’t see," she added.
Bank M is currently also planning capital raising to launch more branches and set up the first mortgage financing company in Tanzania. It also intends to issue an initial public offering (IPO) of its shares and a debt issue later this year.