Local Investors Sweep In as Diamond Trust Bank Walks Away from Burundi
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Diamond Trust Bank (DTB) has announced plans to exit the Burundian market by selling its majority shareholding in Diamond Trust Bank Burundi to a consortium of primarily local investors. The transaction will transfer DTB Kenya’s entire 83.67% stake in DTB Burundi, a move that shifts control to Burundian shareholders.
The DTB Kenya Board confirmed the proposed sale after signing a conditional sale and purchase agreement with the consortium, which includes DTB Burundi’s existing minority shareholder. The deal, once completed, will bring the Burundian subsidiary fully under local ownership.
Why DTB Is Leaving Burundi
According to DTB Group CEO, Mrs. Nasim Devji, the decision is in line with the bank’s strategy to focus on its core markets of Kenya, Uganda, and Tanzania. DTB first entered Burundi 16 years ago as part of its financial inclusion agenda and has since built up a stable banking operation.
“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,” Mrs. Devji said.
She added that the new shareholders are committed to maintaining the institution’s financial inclusion work while applying local business expertise.
Earlier this year, Diamond Trust Bank adjusted its lending rates in line with the Central Bank of Kenya’s revised credit pricing framework, a move that affected both retail and corporate borrowers.
DTB Burundi’s Growth Story
Diamond Trust Bank Burundi started operations in 2009 with one branch in Bujumbura. Over the years, it has grown into a recognized financial institution with four branches, offering services to retail, business, and corporate clients. The subsidiary is ranked among the top ten banks in Burundi’s growing financial sector.
Under DTB’s stewardship, DTB Burundi developed a reputation for stability and good governance. The incoming shareholders, according to Mrs. Devji, plan to build on this platform by expanding services while upholding sound risk management practices.
Impact on Shareholders
As a listed entity on the Nairobi Securities Exchange (NSE), DTB Kenya has issued a formal cautionary announcement through its Company Secretary, Mr. Stephen Kodumbe.
Shareholders and the investing public have been advised to exercise caution when trading in DTB Kenya’s securities on the Nairobi Securities Exchange until the deal is concluded.
“Completion of the proposed transaction is subject to conditions that are customary for transactions of this nature, including receipt of all regulatory approvals from, amongst others, the Central Bank of Kenya and the Bank of the Republic of Burundi, and to notifications to the Capital Markets Authority and, if required, other relevant regulators,” the cautionary statement read.
What Happens Next
The completion of the sale is dependent on receiving regulatory clearances in both Kenya and Burundi. DTB Kenya has stated it will continue to issue updates in line with regulatory requirements as the transaction progresses.
If successful, the sale will close DTB’s 16-year presence in Burundi, while allowing Burundian investors to steer the bank’s next phase of growth. For DTB Kenya, the move allows it to channel resources and focus on strengthening its operations in its three priority markets.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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