M Holdings, which is owned by various shareholders of Bank M Tanzania, has received approval from the central bank of Kenya to acquire a 51% stake in Oriental Commercial Bank.
The approval paves the way for Bank M to foray into Kenya’s banking market, becoming the first Tanzanian lender to do so.
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"Bank M is the first bank from Tanzania to enter the Kenyan banking sector. Its entry into the Kenyan market strengthens the ongoing East African Community (EAC) integration," the central bank said in a statement.
Oriental Commercial Bank will be rebranded as M Oriental Commercial Bank Limited following the acquisition, which is slated to be completed by September 2016.
M Holdings has now also been allowed to form a non-operating holding company. The central bank did not disclose the deal value.
Earlier this month Bank M, licensed and regulated by the Bank of Tanzania since February 2007, announced plans to launch operations in Kenya.
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